BeautyKind to raise $10m through IPO

US-based online cosmetics retailer BeautyKind has announced plans to raise $10m through an initial public offering.

The US Securities and Exchange Commission (SEC) has qualified the Regulation A+ Initial Public Offering (IPO) of BeautyKind.

The retail site was launched in November 2014 and has been in beta mode for around the first five months.

Shares of BeautyKind’s common stock are expected to commence trading on OTCQX following the termination of the offering.

The firm is intending to sell up to 1.6 million shares for a fixed price of $6.25 every share, reported pymnts.com.

Regulation A+ Offering is an initiative that was revised recently by Title IV of the JOBS Act that enables startups as well as small firms to opt for mini-IPOs for amounts under $50.

This provision enables entrepreneurs to raise funds quickly through both accredited investors who are typically high net worth individuals and/or institutions, and non-accredited investors.

BeautyKind founder and CEO Hil Davis said: "Regulation A+ provides a way for individuals to own a piece of BeautyKind directly, in order to help fuel its new ventures and overall brand development.

"We’re excited to offer investment opportunities that not only reach our customers, but also a wider audience, and look forward to taking this pivotal next step in the brand’s lifecycle."

Funds raised through the IPO will help launch a mobile app.

The retailer enables its customers who shop for their choice of beauty, hair, fragrance and skincare brands to direct 5% of every purchase to causes of their choice, whether that is a local cause or a national organisation.