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Dick Smith’s IPO to open opportunities for investors in Australian electronics business

Australia’s largest retailer of consumer electronics products announced plans of listing on the Australian Securities Exchange (ASX).

Dick Smith Holdings Limited (Dick Smith) lodged the prosecutes for the Initial Public Offering (IPO) with the Australian Securities and Investments Commission (ASIC) on Thursday.

Based on a share price of AUD2.20 per share, the company expects the offering to raise AUS344.5 million (USD).

“With the transformation initiatives largely implemented, management put in place a comprehensive strategy and plan focusing on key business initiatives, which provide a strong platform for growth and the further development of our business. The IPO provides investors a great opportunity to share in this continued development and what we believe will be future success,” said Nick Abboud, Managing Director and CEO of Dick Smith, in a news release.

Phil Cave, Dick Smith Chairman, said the company is well positioned to execute a defined, multi-faceted growth strategy: store network, omni-channel, mobility, private label.

“Anchorage is retaining a significant shareholding in Dick Smith, reflecting its support for the transformation program and its confidence in the company’s forecast financial performance,” Cave said.

The company said the retail component of the IPO (Retail Offer), which will comprise a broker firm offer, employee award offer and Chairman’s list offer, is scheduled to open on 22 November, while the institutional component of the Offer (Institutional Offer) is scheduled to open on 21 November.