Kogan sets a date for IPO
Online retailer Kogan.com will have a market capitalisation of $168 million when it floats on the ASX on June 30, at an offer price of $1.80 per share.
Kogan plans to raise $50 million in the float, which will be used to expand into new products and categories, as well as marketing.
Current shareholders – founder & CEO Ruslan Kogan and COO & CFO David Shafer – will retain approximately 69.2 per cent of Kogan.com and will enter into voluntary escrow agreements.
The share offer comprises an institutional component, a broker firm offer and an employee offer. No general public offer of shares will be made.
Kogan.com has appointed Greg Ridder as non-executive chairman and Harry Debney as non-executive director.
“Kogan.com is part of a ‘next generation’ of online retailers,” said Ridder. “In combining the data analytics opportunity offered by online retail with the deep technological expertise of its management and team, Kogan.com has created a vertically-integrated business model with a market-leading private label capability. This is complemented by a compelling range of in-demand Australian and international third party brands, supporting website traffic and cash generation.”
In addition to underlying market growth, Kogan.com is pursuing growth in new verticals including Kogan Travel and Kogan Mobile and expansion of Kogan.com’s higher-margin product ranges, which include its private label and its domestic third party branded products.
Another key priority is fully integrating the Dick Smith online assets which it acquired in April 2016.
“Kogan.com has become a challenger brand that stands for price leadership through digital efficiency. Our goal is to make in-demand products and services more affordable and accessible,” Ruslan Kogan said.
“By focusing on our customers and funding our growth from cash flow, we have been EBITDA positive since inception. Kogan.com has enjoyed strong growth for the past ten years and — up until this point — has never had any external equity funding.”
Kogan’s FY17 revenue has been forecast to hit $241.2 million with earnings before interest, taxes, depreciation and amortisation (EBITDA) of $6.9 million.