Search ASX code:
Generic filters

Search ASX code:
Generic filters

Search ASX code:
Generic filters

Search ASX code:
Generic filters

Kogan (ASX:KGN) is doing a $115 million capital raising. Should you take part?

Kogan.com (ASX: KGN) has entered a trading halt to do a $115 million capital raising.

What is Kogan.com?

Kogan.com is an online business that was set up by Ruslan Kogan in 2006 in his parent’s garage. Kogan.Com offers a variety of products and services including Kogan Retail, Kogan Marketplace, Kogan Mobile, Kogan Internet, Kogan Insurance and Kogan Travel. Kogan.Com aims to offer consumers price leadership through digital efficiencies.

Kogan.com’s capital raising

The online business has announced a capital raising this morning.

There will be a $100 million fully underwritten placement at an offer price of $11.45 per share. Kogan.com will then do a share purchase plan (SPP) for existing shareholders to raise up to $15 million. Regular shareholders will be able to start taking part on 18 June 2020.

The offer price of $11.45 is a 7.5% discount to the last closing price yesterday of $12.38. The new shares issued will represent around 9.2% of the company’s existing shares.

Why is Kogan.com doing a capital raising?

The raised money will be used to provide financial flexibility to quickly act on future acquisition opportunities. Two of the previous investments that it has made have been Dick Smith and Matt Blatt.

Kogan.com said it is able to drive value from businesses with a strong brand by leveraging its existing systems, processes, supply chains and technology.

Kogan.com CEO Ruslan Kogan said: “Kogan.com is committed to making the most in-demand products and services more affordable and accessible. Our long-term strategy has enabled us to thrive in the current challenging environment, and we are now in a better position than ever to take advantage of growth opportunities.”

Should investors take part?

The company is reporting very strong growth at the moment. The discount is quite nice, but the share price has run hard. I’m not sure the capital raising is a clear buy like the raising a couple of months ago. I’d have preferred to buy Kogan shares when it was under $5. It depends what Kogan does with the money.

If it can find some great investment opportunities then it could be a smart move to buy troubled retailers and then just have a ecommerce offering.

Disclosure: At the time of writing, Jaz doesn’t own shares in any of the businesses mentioned. 

Are you stuck wondering where to invest right now? Have you got cash 'sitting on the sidelines'? Are you looking for dividend income AND growth but don't know where to start? Rask's expert ASX analyst team has just released a full report, detailing where we'd invest $10,000 right now.

Not only are we offering these 11 investment ideas completely FREE, we've also released an in-depth podcast to go with the report!

So, whether you have $2,000 or $50,000, our brand new analyst report could help transform your watchlist. Right now, you can get the full analyst report emailed to you for FREE by CLICKING HERE NOW or simply entering your email below.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Are you stuck wondering where to invest right now? Have you got cash 'sitting on the sidelines'? Are you looking for dividend income AND growth but don't know where to start? Rask's expert ASX analyst team has just released a full report, detailing where we'd invest $10,000 right now.

Not only are we offering these 11 investment ideas completely FREE, we've also released an in-depth podcast to go with the report!

So, whether you have $2,000 or $50,000, our brand new analyst report could help transform your watchlist. Right now, you can get the full analyst report emailed to you for FREE by CLICKING HERE NOW.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

LIVE ASX Chat - Join in!

Play Video

Keep reading:

Rask Analyst’s $10,000 Hypothetical Portfolio 

Rask Australia’s expert analysts have just released 11 stock & ETF positions they’d buy right now as part of a $10,000 hypothetical portfolio. 

Completely free, this report comes with the exact ticker codes, how much the analysts would invest and a detailed over the company and why we like it. Plus a 60-min podcast! 

Simply enter your email address and we’ll send you the report.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.