Dusk IPO to raise $70m

Dusk was originally part of the homewares business Adairs, which is already listed, but was spun out as a separate retailer. Picture: Supplied

Candle retailer Dusk has priced its initial public offering at $2 per share and will raise $70m.

The company has secured demand from cornerstone investors in recent days in a move that will see the business list with a $124.5m market value and a $119.5m enterprise value.

The price equates to 10 times the group’s net profit for the 2020 financial year, with the retailer paying a 7 per cent fully franked yield at the offer price.

Last financial year, Dusk generated like for like sales growth of 17.5 per cent, $15.8m of earnings before interest, tax, depreciation and amortisation and $100.9m of revenue.

The business is due to list on November 2.

It describes itself as an Australian omni-channel specialty retailer focused on Home Fragrance Products.

The product range is developed in-house and sold through the company’s 115 stores throughout Australia, including its online store.

Private equity firm Catalyst owns 64.5 per cent of Dusk and will hold 25.4 per cent once it is listed.

Retailer Brett Blundy currently owns 18.5 per cent and will own 7.3 per cent once listed, with new investors to own 56.2 per cent on the company’s listing.

Working on the float is Canaccord, Shaw and Partners and its adviser is Allier Capital.

Dusk was originally part of the homewares business Adairs, which is already listed, but was spun out as a separate retailer.

Chief executive of the business will be Peter King, while John Joyce will be chairman.