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 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.