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."

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags Ruslan KoganKogan TechnologiesASX listingKogan.com

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.
Julia Talevski
Show Comments

Cool Tech

Breitling Superocean Heritage Chronographe 44

Learn more >

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?