Friday, December 04, 2020

Booktopia lists at a 25% premium



Shares in Booktopia jumped 25% on the opening day of trade after a four-year ambition for founder and CEO Tony Nash came true.


The company (ASX: BKG) opened at $2.86, a 24% premium to the $2.30 issue price, when trade opened at 11am, before ending the day at $2.72 (+18.26%).


1% of the business is worth $3million 


The oversubscribed IPO raised $43.1 million for a market capitalisation of $315.8 million on the offer price. 


Nearly $18.1 million of the raise went to existing shareholders with $25.1 million allocated to growth through the company’s 14,000 sqm Sydney distribution, increasing stock and working capital, listing costs, employee shares and paying down debt. 


Booktopia’s listing is the latest twist in the 16-year history of the country’s largest Australian-owned online book retailer.


In February this year, before Covid-19 hit  Champ Ventures CEO  Su-Ming Wong and JBS Investments CEO John Sampson led a consortium of investors in a $20 million capital raise.


Those investors did quite well!


Since its inception, Booktopia Group has sold over 35.5 million items to more than 5 million customers across Australia and New Zealand.


Mr Nash said the Australian book and publishing market was in its strongest position in many years, with demand across numerous categories at record levels and major new releases, expected to drive sales right up to Christmas.

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