Kogan.com aims for ASX listing on June 30

Retailer valued at $168 million.

Kogan founder and CEO, Ruslan Kogan.

Kogan founder and CEO, Ruslan Kogan.

Kogan.com has revealed its plans to list on the ASX on June 30 through an initial public offering (IPO) that will place $168 million market value on the online retailer.

As a result, it has lodged its prospectus with ASIC with an offering of $1.80 per share and plans to raise $50 million.

The company plans to use its raised funds for growth capital including investment in new products and categories as well as marketing. It aims to tap into new verticals such as Kogan Travel and Kogan Mobile.

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

Kogan said his online business has been EBITDA positive since its inception in 2006 and up until this point has never had any external equity funding.

The online retailer has forecast revenue sales for FY17 of $241.2 million and EBITDA of $6.9 million. It boasts about 2.3 million email subscribers as of December 2015 and has about 28,000 private label and branded products in its portfolio.

In his letter to investors, Kogan revealed he started the company as a 23-year old to sell 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.”

Kogan said analytics-driven decision making was at the core of its culture and its subscribes to the policy that ‘revenue is vanity; profit is sanity.’

“We will strive to strike a balance between short term profitability and investment in long term vision and growth for the company,” he said.

"We are mindful of both short term targets and long term returns for our shareholders, and our decisions will continue to be shaped by the most efficient use of capital. To put it simply, we don’t splash cash.”

It has also appointed Greg Ridder as non-executive chairman and Harry Debney as non-executive director. Canaccord Genuity is the lead manager and underwriter, and Arnold Bloch Leibler is the legal adviser.

“In combining the data analytics opportunity offered by online retail with the deep technological expertise of its management and team, Kogan.com has created a vertically integrated business model with a private label capability,” Ridder said.

"This is complemented by a compelling range of in-demand Australian and international third party brands, supporting website traffic and cash generation."

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