Retailer Dick Smith intends to raise $344.5 million by floating on the stock market less than a year after being sold by Woolworths for $20 million.
Dick Smith will offer 156.6 million shares – a 66 percent stake – at $2.20 each, while owner Anchorage Capital retains a 20 percent stake and executives collectively hold 11.5 percent.
Chief executive Nick Abboud, who controls a 6.5 percent stake under LMA investments, said: "Dick Smith has undergone a significant transformation under the dynamic ownership of Anchorage.
"Dick Smith management is very excited about the opportunity to list the company and pursue profitable growth on behalf of shareholders."
The company's prospectus said it would execute a fourfold strategy: driving store traffic; implementing a strong omni-channel system; enhancing its mobility offering; and increasing the profitability of its private label growth.
The company also plans to continue supporting its 'fashtronics' label Move.
Anchorage forecasts Dick Smith will earn $1.27 billion in sales revenue in 2014, a fractional decrease compared with the $1.28 billion generated in FY13. However, net profit is expected to be $40 million, a 597 percent increase on the $6.7 million generated the year before.
Dick Smith was acquired last September by turnaround and special situations private equity firm Anchorage Capital. In addition to its $20 million purchase price, Anchorage made a $74 million payment for Woolworths to forgo any share it would make from Dick Smith's sale.
The retail offer opens on 22 November and is set to close 2 December. Dick Smith will commence trading on the ASX on 12 December.
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