Cosmetique, an Australian national cosmetic and injectables chain, has announced plans for the US$12 million ASX listing of parent company Stormeur.The beauty service chain is looking to cash in on a long-held economic theory in retail, dubbed the ‘lipstick effect’, that in times of economic hardship, consumer spending on beauty and feel-good services remains strong.Cosmetique offers a range of personal and beauty services, specialising in injectables, laser hair removal, and various beauty treatments – but the core business model of the group is based on the rising popularity of non-surgical cosmetic injectables.“We are looking forward to the next phase of growth for Cosmetique. It has already become one of the country’s leading and most trusted cosmetic and injectables brands with 17 clinics across five states since I founded the business in 2017,” Stormeur group chairman and managing director Dr Vivek Eranki said in a statement.Raising beauty While injectables are considered to be an affordable alternative to cosmetic surgery, Cosmetique estimates the injectable industry is worth $2.7 billion in Australia.“Listing the business on the ASX will enable the business to expand by raising funds to open new clinics, optimise existing ones and explore acquisition opportunities in wellbeing, health and personal services sectors including the addition of cosmeceuticals and skincare products complementary to the clinics’ treatments,” said Eranki.“With new clinic sites already slated for 2025, the expansion will involve opening four new clinics in New South Wales and Victoria initially, with more planned for following years. Our aim is to be within 20 minutes’ drive from 90 per cent of the Australian population,” he added.Its longer-term plans involve expanding internationally into the Asian market – Cosmetique is looking to open clinics in Indonesia, the Philippines and India and capitalise on a rising middle-class demographic, where it says the growth in the cosmetic industry has been “exponential”.According to Dr Eranki, the Australian market will continue to experience growth in the beauty and cosmetic sector as the awareness of the benefits of injectables, compared to cosmetic surgery procedures, increases.Cosmetic surgical services were part of Cosmetique’s customer offering until it discontinued them in December 2019.Cash injection Currently, Cosmetique has a database of more than 90,000 clients, and it believes it is well-placed to achieve future growth despite the competitive landscape.The leading national cosmetic and injectables chain has tapped Liquidity to manage its IPO which closes on October 14. Eranki will retain over 60 per cent shareholding in the group.“Cosmetique boasts a proven business model run by a consistent and highly qualified management team that is taking a strategic approach to further growing the business,” Liquidity’s executive chair Bryant Mclarty said in a statement.The core team will remain in place to guide the business strategy and to ensure that the quality and consistency the business and brand have become known for remain.The Australian market and investors no longer underestimate the value of cosmetic services and there seems to be an industry-wide understanding that injectables are the future of beauty.“There have been several major acquisitions in this space, KKR buying Laser Clinics Australia in 2017 and Wesfarmers’ acquisition of Silk Laser Australia in 2023, but this is the first IPO in this space so we believe it will be competitive,” concluded Mclarty.