​Kogan expected to float on ASX soon

Online consumer electronics retailer Kogan.com is expected to launch a AU$50 million initial public offering by mid-June.
Written by Aimee Chanthadavong on

Online consumer electronics retailer Kogan.com is expected to launch an initial public offering (IPO) in the coming weeks to float on the Australian Securities Exchange this year.

It is understood Kogan will launch a AU$50 million IPO by mid-June.

The intended listing also coincides with plans from rival appliances retailer The Good Guys to launch its own IPO.

Kogan is expected to have a market capitalisation of about AU$170 million, which amounts to 20 times its forecast earnings before interest, tax, depreciation, and amortisation.

The company, founded by Ruslan Kogan in his parent's garage in 2006, makes approximately AU$200 million in revenue each year.

It currently has two major shareholders, Kogan and the company's executive director David Shafer, who are expected to hold onto a large portion of their own stakes.

Kogan.com is believed to have already attracted about AU$30 million in cornerstone support from Australian fund managers.

The company declined to comment on the IPO.

Kogan's planned IPO follows on the recent acquisition of Dick Smith's online business, which went live at the start of May, a month ahead of schedule.

The new dicksmith.com.au and dicksmith.co.nz websites were initially scheduled to begin operating from June 1, however Kogan said its team was able to build the Dick Smith platform in under two months using the existing operations and logistics infrastructure of the Kogan business.

Kogan announced it was going to save Dick Smith's online retail business in March, after Dick Smith entered into voluntary administration in early January.

Kogan said his company was going to build on the Dick Smith legacy.

"I remember as a kid always visiting Dick Smith to look for parts to upgrade my computer. There is a strong history of passion in the Dick Smith community for how technology can improve our lives, and we look forward to helping make it more affordable and accessible for all," he said.

Dick Smith landed in hot waters after it was unsuccessful in securing a funds injection from its banks after suffering financial woes on worse-than-expected sales and cash generation in December.

Dick Smith chairman Rob Murray previously said the company explored alternative funding, but concluded it would not be secured in time if the business wanted to order inventory over the next four to six weeks.

As a result of this, Dick Smith closed 363 Australian and New Zealand retail stores that saw a total of 2,890 staff lose their jobs.

With AAP


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