Australia’s largest online book retailer, Booktopia, is on track to price as a company worth more than $350m including debt for its initial public offering, say sources.
The pricing will equate to between 4.5 times and 5 times its gross profit.
It comes after meetings were held with investors last week about the upcoming IPO of the online book retailer.
Chief executive and co-founder Tony Nash is expected to retain his stake in the business once listed and all of the senior management and shareholders will stay on after the float.
The selldown is expected to be relatively modest, with a small amount raised.
For the 2021 financial year, the company’s revenue is expected to be about $200m.
Booktopia’s prospectus is due out in November ahead of its listing in December.
Online retailers such as Booktopia and Adore Beauty that are preparing to float have experienced soaring sales amid COVID-19.
Booktopia made efforts to list in 2016, seeking to raise $40m to float with a $100m market value, but those plans were later shelved.
Working on the listing this time is Shaw and Partners and Morgans.
Operating for 16 years, Booktopia has a customer database of 4.5 million, with 1.4 million active customers.
It sold more than 6.4 million books in the 2020 financial year.
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