Written on the 9 June 2016


KOGAN.COM is set to make its debut on the ASX at the end of this month after launching a $168 million float.

The Melbourne-based online retailer has an offer price of $1.80 per share to raise $50 million from institutional investors, priority investors and eligible employees.

The funds raised have been earmarked as growth capital, including investing in new verticals Kogan Travel and Kogan Mobile, higher-margin product ranges and marketing.

Kogan.com founder and CEO Ruslan Kogan (pictured), along with COO and CFO David Shafer, will retain about 69.2 per cent of the business.

"Kogan.com has become a challenger brand that stands for price leadership through digital efficiency," Kogan says.

"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."

Kogan.com has been EBITDA positive since it was established in 2006 and has never had any external equity funding until now.

The company has forecast revenue of $241.2 million and EBITDA of $6.9 million for FY17.

"I am incredibly proud of Kogan.com's track record and I believe this sets us apart from our peers," Kogan 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."

Kogan.com has appointed Greg Ridder as non-executive chairman and Harry Debney as non-executive director, to bring international and local experience in retailing to the board.

Ridder says the company's combination of data analytics and technological expertise makes it an attractive opportunity for investors.

"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," Ridder says.

The company relaunched the Dick Smith brand online last month, however the business hasn't been included in prospectus forecasts due to its limited trading history.

The broker firm offer, priority offer and employee offer will close on June 27, with shares expected to commence trading on June 30 on a deferred settlement basis.

The offer has been underwritten by Cannacord Genuity.

Read about Gold Coast music streaming service Guvera's ASX float here.







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