Shares in online retailer Kogan.com dropped 16% in the first day of trading on the ASX today.
The $1.80 shares, said to be oversubscribed in the initial public offering, opened steady but then slipped to $1.72 and later closed at $1.50.
At that price the company started by Ruslan Kogan in 2006 in his parent’s garage has a market capitalisation of about $140 million, down from the $168 million strike price.
The $50 million raised in the IPO will be used to expand the business, including growth in Kogan Travel and Kogan Mobile, and the integration of the Dick Smith online business acquired in April.
The company has forecast sales in the 2017 financial year of $241.2 million.
The 33-year-old Ruslan Kogan and his business partner David Shafer, the CFO, have retained almost 70% of the company between them.
Today they each pocket pocket $7.5 million cash from the float proceeds.
Kogan still owns about 50.5% of the company, worth about $77 million today.