First Kogan.com now Temple and Webster, the other major listed sole online homewares and furniture retailer will look to raise new capital from shareholders to help bolster its digital offering after the surge in sales earlier in the year during depths of the coronavirus lockdown, continued in June.
Kogan.com raised $100 million from institutions and is in the process of wrapping up a $15 million issue retail shareholders. That issue closes tomorrow, Friday, July 3.
Temple and Webster wants $40 million from its retail base.
Temple and Webster said the sharp rise in sales seen earlier in the year had continued in June.
“June 2020 has maintained the strong sales momentum, with gross sales (to the 28th) growing 130% vs pcp. Full-year FY20 EBITDA will be greater than $8m,” the company said.
That’s up around $1 million from the $7.1 million the company reported in a statement to the ASX on June 18.
Gross sales growth also accelerated in June from the 90% plus reported on June 18 to yesterday’s 130% figure.
The e-tailer told ASX on Wednesday it was looking to raise $40 million from offering 7 million shares for $5.70 each, a 9.7% discount to the company’s $6.31 closing price on Tuesday
The company said proceeds from the raise will be used to both strengthen the online retailer’s balance sheet and also make a number of strategic investments to improve the company’s online capability.
“Given the recent acceleration in the adoption of online purchasing, particularly with respect to the Australian homewares and furniture market, Temple & Webster considers it prudent to strengthen its balance sheet, providing the Company with further financial flexibility and ensuring Temple & Webster is well placed to capitalise on any additional organic and inorganic growth opportunities that may arise,” the company said in Wednesday’s statement.