Clothing and travel equipment retailer Kathmandu is planning to open another 12 stores in Australia and New Zealand to add to its 82-store network, ahead of its initial public offering and ASX listing.
 
Kathmandu has enjoyed significant growth in recent years. Sales have increased to $176 million in 2008-09 from $133 million in 2007-08 is forecasting sales of $197 million in 2009-10.
 
Kathmandu’s chairman James Strong, said the company had undergone a transformation over the past three and a half years, with significant investment in new stores, IT systems, distribution centres and its people, and a dual stock exchange listing was the logical next step for its growth plans.
 
“We believe a dual listing will provide Kathmandu with growth flexibility, and give investors the opportunity to own shares in a very well recognised retail brand which resonates with customers’ aspirations of travel and adventure.”
 
“With an experienced management team led by CEO Peter Halkett, and CFO Mark Todd, the directors believe that Kathmandu is well positioned to deliver attractive financial results for its Shareholders,” he said.
 
CEO Peter Halkett said Kathmandu is an iconic brand in New Zealand and has a strong and growing profile and attractive market position in Australia.
 
“Kathmandu’s investment to date has focused on opening new stores in Australia and New Zealand, and providing the business with the capacity to support the continued store rollout program.
 
“The company’s store rollout strategy has proven successful with no loss making stores in the 45 stores in Australia or the 31 stores in New Zealand open at 31 July 2009.
 
“We believe there are further opportunities to drive earnings by improving existing store sales and margins through refurbishment, expansion of product offerings and further marketing initiatives,” said Halkett.
 
Between 166.9 and 197.4 million shares are being offered to investors based on the indicative price range of $1.65 to $1.90 per share, giving the company a market capitalisation of between $330 and $380 million.
 
Kathmandu is currently owned by Goldman Sachs JBWere Principal Investment Area and Quadrant Private Equity.