eCommerce company, MyDeal.com.au limited (Proposed ASX: MYD), is set to list on October 25, with the offer formally closing this week. MyDeal.com.au is looking to raise A$40M, asking $1 per share with $5M of the funds in a payback to existing shareholders. Upon completion of the offer, mydeal.com.au will have an indicative market cap of approximately $280M.
MyDeal sells over 5 million products via their online platforms throughout Australia. While the company primarily sells household goods such as furniture and homewares from independent sellers, they have recently started their own private label offering as part of their growth strategy. Since beginning operations in 2011, the company has grown to host 3.9 million average monthly users and currently have over 800 active sellers.
The e-commerce and online retail market in Australia was estimated to record revenue over $35B during FY20. The figures show a significant 23% increase from FY2019, indicating that there was still room for Australian consumers to increase their online shopping habits. The company noted that COVID-19 has contributed to the year-on-year increase, accelerating adoption within consumer segments.
FY20 was profitable for the company, recording most of their revenue from charging a commission to sellers of products sold via their marketplace, secondary sources of income stem from transaction and subscription feeds, advertising revenue, and sales from their private line of products.
Most of MyDeal’s proposed use of funds are towards growing the company through investing in inventory ($11.25M), personnel ($7M), and advertising and branding ($11.5). Interestingly, the company is only setting aside $2.25M of the funds raised for working capital, which is generally a good sign for prospective floats, the remaining $3M is going towards costs of the offer.
*Listing dates mentioned are prospective only and are subject to change at the discretion of the company.
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