Australian e-commerce behemoth, Kogan.com, has launched a $115 million equity raise, as it seek to pursue a range of business acquisitions following record-breaking sales from coronavirus-fuelled online demand. The company is now worth ~$1.2 billion, more than Myer and David Jones Australia combined. 

Sales spiked 103.6% and earnings [adjusted before tax] jumped 219.3% YoY over April and May, prompt by increased online shopping demand from home-bound consumers.

Disclosed in an investor update, the company has announced it’s pursuing its first raise, with $100 million sought from institutional investors in a fully underwritten share placement of $11.45 per share.

A $15 million share placement plan will also accompany the institutional portion, with both raises seeking to lift cash on hand to “act quickly” on business acquisitions for further growth.

The news comes after the e-tailer purchased furniture retailer Matt Blatt for $4.4 million in May, with the digital assets of failed electronic group Dick Smith captured for $2.6 million over four years ago.

“We are now in a better position than ever to take advantage of growth opportunities,” said Chief Executive and founder, Ruslan Kogan.

“Our low cost of doing business and digital expertise have put us in the driver’s seat to capture market share as the retail industry undergoes significant change.”

Settlement of the new shares is slated to occur on June 16, with allotment of new shares issued under the placement to occur the day after.

Shares in Kogan.com entered a trading halt today, pending the release of the announcement.