Kogan.com will have a market capitalisation of $168 million when its lists on the ASX later this month.
The pure-play online retail website is offering shares at $1.80 each to raise $50 million to be used to expand the business through new products and marketing.
Founder Ruslan Kogan and CFO David Shafer together are retaining about 69.2% of the business.
Kogan started the company in 2006 with two private label LCD televisions. Now there are about 28,000 products for sale.
Revenue is forecast at $241.2 million and EBITDA (earnings before interest, taxes, depreciation and amortisation) of $6.9 million for 2017.
The company recently acquired the Dick Smith name and customer list. The prospectus doesn’t include forecasts for this because of he limited trading history under Kogan.com
“Kogan.com has become a challenger brand that stands for price leadership through digital efficiency,” says Ruslan Kogan.
“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.”
He says the business has grown strongly for the past ten years and, up to now, has never had any external equity funding.
“I am incredibly proud of Kogan.com’s track record and I believe this sets us apart from our peers,” he says.
“It also speaks volumes about our culture, which is underscored by high levels of personal responsibility, and demonstrates the strength and sustainability of our business.”