Reality for local online consumer electronics retailer Kogan.com (KGN) came yesterday after the company listed on the ASX – the shares fell 30 cents, or more than 16% on its stock exchange debut.
The company listed on the ASX at midday yesterday after a $50 million initial public offering made to institutional investors.
Kogan launched with a market capitalisation of $168 million, after 30% of the company was sold at $1.80 a share.
Shares fell to $1.60 in the first hour of trade, and then closed at $1.50 on a day when the broader market ended up 0.5% and rival JB Hi-Fi was up 0.3% at $23.63.
The money raised in the float will be used to grow the business by investing in new products and product categories.
Founder Ruslan Kogan, who started the company in suburban Melbourne in 2006, has retained 50.5% ownership and business partner David Shafer owns another 19%.
Kogan has grown by its online offering of cheap private label tech and audiovisual goods, especially TVs, but the company has recently diversified into categories including household supplies, furniture, travel and telecommunications.
Kogan forecasts sales of $241 million this year and earnings of $6.9 million.
The float follows the demise of Dick Smith at the start of the year, which would have been a competitor for Kogan, while whitegoods and consumer electronics retailer The Good Guys is heading to either a trade sale or stockmarket float later this year.
