Soccer legend David Beckham recently invested in a cannabis skincare brand – and shares climbed fourfold upon its listing on the London Stock Exchange.
The newly-listed cannabis skincare range Cellular Goods raised over USD 18 million in an initial public offering prior to listing on the London Stock Exchange, where its share price climbed fourfold upon listing.
After it's IPO price had been set at 5 pence, the public listing of Cellular Goods drove up its price up to 20.50 pence, giving the company a valuation of £25 million.
Though it wasn't simply the listing that drove up the share price, but also the support the company received from football star David Beckham.
"David Beckham's backing certainly added a celebrity glow to its listed debut. It might seem a bit of a curveball for a man known for free kicks rather than scoring on the financial markets, but his personal brand has given the launch a bit of a kick," said Susannah Streeter, a senior investment and markets analyst at Hargreaves Lansdown.
"With shares 13 times oversubscribed, initial demand for cannabinoid company Cellular Goods was always likely to be high and as trading has got under way it's become a hot stock," Streeter continued.
Cellular Goods utilizes synthetic cannabinoids to produce cannabis-infused skincare products designed for both daily use and use by athletes.
"We are delighted with the tremendous support we have received from institutional capital and the unprecedented level of interest shown by retail investors for an IPO of this size," said Cellular Goods Chief Executive Alexis Abraham, in a statement.
The global CBD-infused skincare market was valued at $633.6 million in 2018, and is pegged to hit $3.4 billion by 2026.
Cellular Goods' listing upon the LSE comes on the tail of MGC Pharmaceuticals Ltd (ASX: MXC), a European-based and Australian-listed bio-pharma company specialising in the production and development of phytocannabinoid-derived medicines, who became the first cannabis company listed on the London Stock Exchange.
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