Kogan float pushed back

The online retailer’s IPO has been delayed for a week after the regulator forced changes.

Kogan.com CEO Ruslan Kogan. Pic: Hollie Adams

Online electronics retailer Kogan.com has delayed its float by one week after the corporate regulator forced it to make changes to its prospectus.

The revised prospectus, lodged Friday, features a revised letter from Kogan.com chairman Greg Ridder and further information about logistic firm eStore Logistics, of which Kogan.com CEO Ruslan Kogan is a minority shareholder. The firm provides warehousing and logistics services for Kogan.com.

The revised document also features more information about risks related to the Australian retail market, travel, bookings and telecommunications industries.

A spokeswoman confirmed the delay and said the IPO was now slated for July 7 under the ASX code KGN.

As reported by The Australian Mr Kogan currently owns 70 per cent of Kogan.com, while his CFO and business partner, David Shafer, owns 30 per cent. Both will be sharing equally in $15 million raised in an offer linked to the IPO.

The prospectus also details Mr Kogan’s remuneration, with the Kogan.com founder entitled to a base salary of $350,000 while Mr Shafer will be paid a base salary of $300,000.

Mr Kogan said investors would judge Kogan.com on the strength of its own business and history of robust earnings.

“We want to accelerate the growth of the business, we have been capital constrained for a while, we have achieved what we have done with our hands tied behind our back, we have grown organically for 10 years … and the positivity from investors has been great and we have pushed the button on it (the IPO).”

”The prospectus for Kogan.com, founded by Mr Kogan in 2006, reveals his online company posted a loss of $300,000 in 2015, down from a profit of $1.8 million in 2014. The company has forecast profit to return to $400,000 in 2016, growing to $2.5 million in 2017.

Revenue is set to climb to $270.1 million in 2017, up from $214 million in 2016. In 2015 Kogan had revenue of $216.3 million.

Kogan.com had a gross margin of 14.4 per cent in 2015, and is tipped to rise to 14.5 per cent this year and 15.2 per cent in 2017.

The forecasts exclude the April acquisition of Dick Smith’s online business, with the firm saying it did not have a long enough trading history under its banner to formulate an accurate projection.

Priced at $1.80 per share, Kogan.com will have a market capitalisation of $168 million upon listing, which is set for June 30.

Mr Kogan is to retain around 50 per cent of the public company and Mr Shafer just under 20 per cent. Mr Kogan will hold 47 million shares, worth nearly $100 million, while Mr Shafer will hold 17.8 million shares worth around $32 million.

In March Kogan bought Dick Smith’s online business — including 1.3 million active subscribers — for $2.6 million.

The Melbourne-based company currently employs 113 people in Australia and Shenzhen, China.

With Eli Greenblat.