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Booktopia seeks $43 million to go public this December

Australian online bookstore Booktopia has lodged a prospectus to raise $43.1 million in an IPO, and list on the Australian Securities Exchange (ASX) this December.

The online retailer is offering 18.8 million shares, including existing shares, at $2.30 each, giving the company a market capitalisation of $315.8 million.

According to the company, $25.1 million out of $43.1 million will be used for funding growth through further investment in the company’s 14,000 sqm distribution facility in Sydney, increasing stock and working capital, listing costs, employee shares and paying down debt. 

The remaining amount will be paid to existing shareholders. 

“Since we sold our first book, we have ploughed millions of dollars and countless hours into

building a dynamic, durable and scalable business,” said Tony Nash, CEO at Booktopia. 

“For the first time, the general public will have an opportunity to share in that success and be part of our future.

“We have achieved tremendous growth over the last few years by focusing on our strengths as an online book retailer and seeking to dominate our sector through superior technology, customer service and product knowledge.”

Founded in 2004, Booktopia hit revenue of $165.8 million last financial year, and has forecast the current year’s sales to 30 June of $204.5 million with a gross profit of $55.7 million and EBITDA of $9.4 million.

The e-commerce retailer accounts for approximately 15 per cent of online consumer book sales in the country.

According to a research by Frost & Sullivan, Australians spent $2.54 billion on books in the last financial year, with $920 million in online book purchases. The online segment is expected to top $1 billion in the current financial year.

Booktopia also launched a $12 million upgrade of its Lidcombe distribution centre which will double its outbound capacity. Nash said the upgraded distribution centre was completed just in time for the Christmas rush.

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