- Australian consumer brand retailer Kogan.com (KGN) has launched a fully underwritten placement to raise $100 million
- The company will issue over 8.7 million new fully paid ordinary shares at $11.45 each
- Once the placement has been completed, Kogan.com hopes to raise up to $15 million through a share purchase plan to existing shareholders
- Each shareholder can apply for up to $30,000 worth of new shares at the same issue price as the placement
- The online retailer will use the funds for financial flexibility to allow it to seize value-added opportunities that broaden its offering and expand its customer base
- Company shares are trading flat at $12.38 each
Australian consumer brand retailer Kogan.com (KGN) has launched a fully underwritten placement to raise $100 million.
Once the placement is completed, the company plans to undertake a share purchase plan to raise up to $`15 million.
Kogan.com will use the funds raised from both the placement and share purchase plan for financial flexibility. Maintaining a secure financial position will enable the company to seize future value accretive opportunities that broaden its offering, expand its customer base and enhance its operating model.
The company already has a proven track record of acquiring and integrating iconic Australian retailers such as Dick Smith and Matt Blatt.
“Kogan.com is committed to making the most in-demand products and services more affordable and accessible,” CEO Ruslan Kogan said.
“Our long-term strategy has enabled us to thrive in the current challenging environment, and we are now in a better position than ever to take advantage of growth opportunities,” Ruslan added.
Placement
Under the $100 million placement, Kogan.com will issue 8,733,625 new fully paid ordinary shares at $11.45 per share. This represents 9.2 per cent of the company’s existing issued capital.
The $11.45 offer price is based on a 7.5 per cent discount to the last closing price on Tuesday, June 9 of $12.38 and a 7.9 per cent discount to the two-day volume-weighted average price (VWAP) on Tuesday, June 9 of $12.43.
Settlement of the new shares issued under the placement is expected to occur on June 16 and they are expected to be allocated on the following day.
Share purchase plan
The non-underwritten share purchase plan was offered to existing shareholders of the company at 7:00 pm AEST on Tuesday, June 9, 2020.
Each eligible shareholder will have the opportunity to apply for up to $30,000 worth of new shares at the same issue price as the placement.
While the company intends to raise up to $15 million, it reserves the right to increase the size of the offer, and the offer may also be subject to a scale-back of applications at Kogan.com’s discretion.
Settlement of the share purchase plan is expected to take place on Thursday, July 9, and new shares are scheduled to be allocated on the following day.
Company shares are trading flat at $12.38 each at 1:15 pm AEST.