Beauty group BWX announces $23.3 million capital raise after trading halt

Shares in Andrew Forrest-backed skin and haircare group BWX have plummeted 40 per cent after it announced a $23.2 million capital raising as a buffer against retail headwinds to come.

The raising will comprise of a $13.5m placement to professional investors and $9.7m through a one-for-10 entitlement offer.

The placement of new fully paid shares is fully underwritten at 60¢ a share, representing a 48.7 per cent discount to the closing price of $1.17 last Thursday before it entered a trading halt..

Shares in BWX — which owns Sukin, Andalou, Mineral Fusion USPA and Nourished Life — closed at 69¢ on Tuesday.

The trading halt came just days after Mr Forrest’s private investment arm Tattarang emerged with a 17 per cent interest.

Shares in the company have plunged this year from $4.39 in January to $1.17 just before last week’s pause in trade, dropping its market capitalisation to $188.2 million.

In 2018, Bain Capital walked away from a possible buyout of the group following weeks of due diligence.