Is Kogan preparing for a $300 million IPO later this year?
Thursday, February 18, 2016/
Online electronics retailer Kogan is reportedly in talks with investment banks ahead of a potential listing on the Australian Securities Exchange later this year.
The Australian Financial Review reports Kogan is in talks with investment banks Canaccord Genuity and UBS and is considering an initial public offering that could be worth as much as $300 million.
Kogan is estimated to be making annual sales of close to $250 million from at least 10,000 different product lines.
Kogan founder Ruslan Kogan declined to comment on the matter this morning.
Kogan founded his company in 2006, selling televisions from his parents’ garage. Today the company has offices in Australia, China, Hong Kong and the United Kingdom.
While the company made its mark in the consumer electronics space, it has recently expanded into at least 15 new product categories, including pet supplies, camping and outdoors, men’s grooming, health and wellbeing and children’s wear.
Over the past few months, Kogan has seemingly continues to thrive while other electronics retailers, most notably Dick Smith, have struggled.
Last month, Ruslan Kogan told SmartCompany staying in business is about evolution and being adaptable to change – something the online retailer prides itself on.
“It’s a bittersweet situation,” he said.
“On one hand, we love competition – it gets us out of the bed in the morning. On the other hand, Kogan.com is proud to have played a significant part in creating more efficiency in the industry and driving down prices for shoppers, which has had a noticeable effect on many large retailers, past and present.”
Brian Walker, chief executive of the Retail Doctor Group, told SmartCompany this morning Kogan has a very clever online presence and the talk of the company going public is interesting.
“Kogan’s been very successful and growing and in their business, which is online, there’s a way that online businesses are growing through acquisition and scale so an IPO will continue that,” he says.
Walker says readying a business such as Kogan for listing on the ASX would generate publicity and awareness of the business and aid growth.
“So the path for online business growth is scale and acquisition like Amazon … or to become an omnichannel retailer,” he says.