Kogan shares slump on ASX debut

Thursday, 7 Jul 2016 13:05:49 | Thuy Ong

A group of smartphones, November 2011. (ABC News)

Shares in online electronics retailer Kogan have slumped more than 12 per cent on their market debut.

In afternoon trade, shares in the company were down 11.4 per cent, or 20.5 cents, at $1.59, having hit a low of $1.495 earlier in the afternoon.

The shares are trading well below their offer price of $1.80 to institutional investors.

The market debut comes after its listing, meant to be a week ago, was delayed due to the Australian Securities and Investments Commission wanting a longer exposure for Kogan's prospectus.

Kogan, founded in 2006, flagged an IPO to raise $50 million in early June.

The company has since grown from an initial product range of two LCD televisions to 52 million site visits a year.

It plans to use funds raised for growth capital, including investing in new products and categories.

The float is in danger of following in the footsteps of Australian retailers Dick Smith and Myer, with Myer's shares trading at around a quarter of their listing price, and the closure of Dick Smith shops earlier this year after the company collapsed.

AustraliaPlus

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Kogan shares slump on ASX debut

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