Down Under Retailer Kathmandu Floats an IPO

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.

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Down Under Retailer Kathmandu Floats an IPO

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.

About The Author

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