Online retailer Kogan.com is raising up to $115 million through a share sale to institutional and retail investors.
The capital raising will comprise of an institutional share placement to raise $100 million at a price of $11.45 per share.
Kogan.com will also raise up to $15 million from existing retail investors through a share purchase plan at the same price.
The sale price for Kogan.com shares represents a 7.5 per cent discount to Tuesday’s closing price of $12.38.
While shares in the company are currently in a trading halt pending the institutional placement, they have risen more than 60 per cent since the start of the year.
The company said proceeds from the capital raising will be used to provide the financial flexibility to act quickly on opportunities to take advantage of current market conditions.
“While multiple opportunities are presenting themselves, the company will focus on opportunities that are value accretive and broaden its offering, expand its customer base or enhance its operating model,” it said in a statement to the ASX.
Kogan last week reported a surge in its online sales during April and May as coronavirus lockdowns restricted activity in the retail sector.
It reported gross sales were up more than 100 per cent from a year ago, while gross profit improved more than 130 per cent for the two-month period.
Its numbers were a contrast to the disastrous April trading figures for the broader retail industry.
Retail spending fell by a record 17.7 per cent in April, figures from the Australian Bureau of Statistics showed, as COVID-19 related lockdown measures and job losses impacted consumer demand.
Kogan in May acquired family-run furniture and homewares company Matt Blatt for $4.4 million and in 2016 acquired iconic retailer Dick Smith.