Kogan to go public, aiming for $170m market cap

Online retailer Kogan has officially launched an initial public offering in a bid to raise $50 million.

Shares will be offered at $1.80 each, and will be uses to fund growth capital and investments in new product categories and marketing.

Kogan expects to commence trading on the Australian Securities Exchange on 30 June with a market capitalisation of $168 million.

Chief executive Ruslan Kogan and COO and CFO David Shafer will retain a 69.2 percent share of the company. Kogan forecasts its revenue for the 2017 financial year ending 30 June to reach $241.2 million with an EBITDA of $6.9 million.

Kogan said it would pursue new verticals like it has with its telecommunications business Kogan Mobile and holiday booking business Kogan Travel. It will also look to expand into higher-margin products such as private label and third-party branded products.

“By focusing on our customers and funding our growth from cash flow, we have been EBITDA positive since inception. Kogan.com has enjoyed strong growth for the past 10 years and – up until this point – has never had any external equity funding,” said Ruslan Kogan.

“I am incredibly proud of Kogan.com’s track record and I believe this sets us apart from our peers. 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 took the opportunity to announce that manufacturing executive and former World Vision CFO Greg Ridder has been appointed as Kogan’s chairman. Chief executive of produce company Costa, Harry Debney, also joined as a non-executive director.

Kogan was founded in 2006 by Ruslan Kogan who started selling private label TVs online directly to customers.

The company made headlines in March when it acquired the branding, customer list and online store of failed electronics retailer Dick Smith. Two months later, Kogan reopened Dick Smith as an online-only business.

Kogan also reopened its telecommunications business Kogan Mobile in October using Vodafone’s 4G network.