Down Under Retailer Kathmandu Floats an IPO

October 19, 2009
SGB Update

After months of speculation, Australasian outdoor-gear retailer Kathmandu has confirmed a dual listing in both Australia and New Zealand with the launch of its IPO on Monday, offering between 166.9 million and 197.4 million shares for sale, or 84% to 99% of the issued capital.


The shares will be priced at between (NZ$2.01 and NZ$2.32 (A$1.65 – A$1.90), raising a total of between $NZ338.6 and $NZ457.2 million.

The retailer currently has more than 80 stores in Australia, New Zealand and the U.K.


Kathmandu, which Goldman Sachs and Quadrant bought for NZ$275 million (A$204 million) in 2006, is offering its shares to the market at around 13-15 times its forecast 2010 earnings, a discount to the Myer offer at around 14-17 times and in line with the overall market.


Kathmandu, which will have a market cap of up to A$380 million after the IPO, has a gross profit margin of 64% percent of sales, which makes the offering all the more attractive.


The IPO consists of a retail offer and an institutional offer, with the retail offer opening on October 27 and closing on November 6.  Shares will begin normal trading on the NZX on November 18.

Down Under Retailer Kathmandu Floats an IPO

SGB Update

After months of speculation, Australasian outdoor-gear retailer Kathmandu has confirmed a dual listing in both Australia and New Zealand with the launch of its IPO on Monday, offering between 166.9 million and 197.4 million shares for sale, or 84% to 99% of the issued capital. The shares will be priced at between (NZ$2.01 and NZ$2.32 (A$1.65 – A$1.90), raising a total of between $NZ338.6 and $NZ457.2 million.  The retailer currently has more than 80 stores in Australia, New Zealand and the U.K.


Kathmandu, which Goldman Sachs and Quadrant bought for NZ$275 million (A$204 million) in 2006, is offering its shares to the market at around 13-15 times its forecast 2010 earnings, a discount to the Myer offer at around 14-17 times and in line with the overall market.
Kathmandu, which will have a market cap of up to A$380 million after the IPO, has a gross profit margin of 64% percent of sales, which makes the offering all the more attractive.

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