|Dick Smith today lodged a prospectus for an IPO of its fully paid ordinary shares and listing on the ASX, with Australian Securities and Investments Commission (ASIC). |
The IPO to certain retail, institutional investors is expected to raise A$344.5 million, based on a price of A$2.20 per share, a far cry from the $20m price it paid for the struggling retailer, a year ago.
156.6 million shares are to be floated.
The first institutional offers will open next week, November 21, while retail offers open the following day, due to be complete by early December.
Anchorage is retaining a 'significant shareholding' in Dick Smith, reflecting its confidence in the company's forecast financial performance, or around 47.3 million shares, according to the prospectus.
Dick Smith's market capitalisation is valued at $520.3 m.
The electronics retailer was fully purchased by Anchorage Capital from Woolworths in November last, for a tidy sum of $20m and paid a further $74 m to cut Woolies out of pocketing any future sale proceeds.
Since then, Dick's has undergone a transformation from a dowdy retailer into cool, progressive retail force to be reckoned with.
"Dick Smith is an iconic, trusted and well known consumer brand, product range is skewed positively towards categories that are attractive in terms of margins and growth", Anchorage said in a statement.
Under leadership of CEO Nick Abouud, it signed deals with David Jones, developing new Move 'fashtronics' stores and developing Apple, Samsung store-in-stores, among other innovations.
Abouud also revamped stores and opened new locations. There is now 359 stores in ANZ - largest network of CE stores in the region- including five new stores so far in FY14, with plans to open a further 11 this year alone.
Dick Smith's FY2013 revenue was $1.28 billion, on net profit of $6.7m - up on FY12.
However, company forecasts predict FY14 revenues will be lower at $1,22 bn, but with net profits, earnings EBITDA set to rise to $40m and $71.8m, Dick Smith prospectus indicates.
Abboud said: "today is a very exciting day for Dick Smith, our team and our customers."
"Management is very excited about the opportunity to list the company and pursue profitable growth on behalf of shareholders."