Offers of shares.
Kogan.com will have a market capitalisation of $168 million on listing on the Australian Securities
Exchange (ASX) on 30 June, 2016. The online retailer announced an offer of new shares at an offer price of $1.80 per share to raise $50 million through an initial public offering (IPO).
The majority of funds raised will be used for growth capital, including investment in new products and categories as well as marketing.
The offer comprises:
- An institutional offer, which consisted of an invitation to bid for shares made to institutional investors in Australia and a number of other eligible jurisdictions;
- A broker firm offer, which is open to Australian resident investors who receive a firm allocation from their broker;
- A priority offer, which is open to investors nominated by Kogan.com; and
- An employee offer, which is open only to eligible employees.
No general public offer of shares will be made under the offer. The institutional offer, broker firm offer and priority offer are underwritten by Canaccord Genuity.
Current shareholders, founder and CEO Ruslan Kogan and COO and CFO David Shafer, will retain approximately 69.2% of Kogan.com and will enter into voluntary escrow agreements.
Kogan.com has also appointed Greg Ridder as non-executive chairman and Harry Debney as non-executive director. Ridder and Debney bring international and local experience in retailing, consumer goods, packaging and logistics to the board of Kogan.com.
Ridder said that, on behalf of the board, he is pleased to offer potential investors the opportunity to invest in “an iconic Australian online retailer that has helped shape the local online market.”
“Kogan.com is part of a ‘Next Generation’ of online retailers. In combining the data analytics opportunity offered by online retail with the 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 range of in-demand Australian and international third party brands, supporting website traffic and cash generation,” he said.
“This combination is unique among Australian online retailers and is a sustainable source of competitive advantage. 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.
In addition to underlying market growth, Kogan.com is pursuing:
- Growth in new verticals – Kogan Travel and Kogan Mobile
- Integration of the Dick Smith online assets which were acquired in April 2016
- Expansion of Kogan.com’s higher-margin product ranges, which include its private label and its domestic third party branded products
- Continued expansion of the Kogan community and fan base, including increasing website traffic and purchase frequency
Kogan.com founder and CEO Ruslan Kogan said, “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. 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.”