news Online retailer Kogan.com has announced an initial public offering (IPO) that it said is aimed to raise $50 million via the sale of new shares.
The shares will available at an offer price of $1.80 each and the firm expects to list on the ASX on 30 June.
The majority of the funds raised will be put towards growing the firm’s business, including investment in new products and categories, as well as marketing, Kogan said.
Alongside that, Kogan said it is pursuing growth in new verticals, including Kogan Travel and Kogan Mobile, and integration of the Dick Smith online assets, which were acquired in April following the company’s collapse.
The firm plans to further expand its higher-margin product ranges, as well as the Kogan community and fan base, which it hopes will increase both website traffic and sales frequency.
The share offer – opening 17 June – will comprise of four categories: institutions, broker firms, investors nominated by the firm (priority offer), and an employee offer (open only to eligible employees only).
However, there will be no general public offer, according to the firm.
Current shareholders, founder and CEO Ruslan Kogan (pictured) and COO and CFO David Shafer, will retain approximately 69.2% of the company.
“Our goal is to make in-demand products and services more affordable and accessible,” said the CEO. We want to ensure that everyone who invests in Kogan.com and becomes a part of our story, believes in our mission, learns about what makes us tick, and understands why we have had 52 million visits to Kogan.com’s core website channels in the past 12 months.”
“By focusing on our customers and funding our growth from cash flow, we have been EBITDA positive since inception,” he continued.
Describing the firm’s “strong growth” over the past 10 years and its previous avoidance of external equity funding, he added: “I am incredibly proud of Kogan.com’s track record and I believe this sets us apart from our peers.”
In its statement, Kogan also announced the appointment of Greg Ridder as Non-Executive Chairman and Harry Debney as Non-Executive Director.
Both additions bring international and local experience in retailing, consumer goods, packaging and logistics to the board, the firm said.
“Kogan.com is part of a ‘Next Generation’ of online retailers,” said Ridder.
“As Kogan.com embarks upon its next phase of growth it is well placed to consolidate its leadership position in online consumer electronics and general merchandise, expand into new categories and explore vertical opportunities where the Kogan brand can deliver strong consumer recognition and loyalty,” he added.
Kogan.com had 52 million site visits in 2015, 621,300 unique customers in the same period, and now has 2.3 million email subscribers, according to the firm’s figures. It offers approximately 28,000 private label and branded products.
Image credit: Kogan