Kogan to float on June 30

Kogan to float on June 30Entrepreneur Ruslan Kigan’s Kogan,com plans to list on the ASX on June 30.

The initial public offering (IPO) will place a $168 million market value on the online retailer.

Founder and CEO Ruslan Kogan and COO and CFO David Shafer will keep about 69.2 per cent of Kogan.com.

The prospectus lodged with the securities regulator yesterday forecasts sales of $241.2 million in the 2016-17 financial year and earnings of $6.9 million.

Kogan acquired the Dick Smith online business from receivers for an undisclosed sum earlier this year but Dick Smith sales forecasts are not included in the figures “due to limited trading history under Kogan.com”.

The company has about 28,000 private label and branded products in its portfolio.

Funds raised in the float will be used for growth capital. That includes investment in new products and categories as well as marketing.

In his letter to investors, Kogan reminded them of his entrepreneurial beginnings where he carved out a space selling private label LCD TVs directly to consumers.

“I approached several business leaders and the overwhelming feedback was that online retail was just for books and CDs, and nobody would buy a TV without seeing it in person,” Kogan said.

“I realised that in order to get the business off the ground quickly, it would need to be self-funding and grow organically.

“I believe that 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.”

 



Business First is a peer-to-peer magazine: written by CEOs and other high level executives, with interviews with some of the country’s best leaders.


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