Australian variety etailer Kogan has announced that it is set to undertake equity raising, following strong results for the fourth quarter to date.
Kogan will undertake a $100 million fully underwritten Institutional Placement comprising the issue of 8.7 million shares at an issue price of $11.45 per share.
This will be conducted in conjunction with Share Purchase Plan to raise up to an additional $15 million.
In its business update, Kogan stated that it grew active customers to over two million by 31 May, with an incremental 126,000 active customers in May 2020.
Gross sales grew by 103.6% across the fourth quarter to date (4QTDFY20) compared to the same period last year, while gross profit also jumped up 130% in the period.
Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) was up by 219.3% in the fourth quarter to date, with the average run-rate of adjusted EBITDA for the period at $7 million per month.
As at 31 May, Kogan reported that cash was $58.6 million with the debt facility drawn to $26 million.
The figures follow Kogan's acquirement of designer furniture label Matt Blatt for $4.4 million.