Kathmandu IPO

[Bongo666]

Rumour's of a Kathmandu IPO (see attachment below) if true will not only test the market for funds but also the appetite for risk when the company that was sold by Jan Cameron about 3 years back is rumoured to be up for sale for more than half a billion dollars, high debt levels, lower profit and a battered retail sector.

Would you have a go at it?

Speculation over Kathmandu IPO.docx

[Share Investor]

Rumours from a Bloomberg article (see below) that the Kathmandu IPO will kick off very soon

Bloomberg Kathmandu IPO.docx

[Share Investor]

It seems that the shot has been put across the bow and the owners of Kathmandu are now pushing for interest in the retailer.

Comments that they are doing well seem to fly in the face of the retailing environment and the fact that they, well, want to sell.

Very high debt levels make an IPO of Kathmandu a bad bet. It would be at a round 50% of market cap at the suggested level of $AU 400 million to be raised.

I fear that a lack of IPOs combined with a perception that the retail sector might be on the improve, along with a high profile brand will make this turkey a starter.

See below for more.

Wary eye on talk of Kathmandu float.docx

[Share Investor]

The media buzz around the possibility of a Kathmandu float is starting to ramp up. 2 stories over this w/end (see attachments below) have the scribes in a frenzy because of the appointment of a new head at the clothing retailer.

Pre Christmas sale?

STUFF - Will Kathmandu float.docx

NZ HERALD - Kathmandu will build on roots.docx

[Share Investor]

It look like most Kathmandu shares will go Australia's way. Input from unnamed brokers pushing this investment as a good one is surely a sign of the opposite. See attachment for more.

Most Kathmandu shares will go to Oz.docx

[Share Investor]

Robert Smith | Monday October 19 2009 - 03:42pm

After months of speculation, Kathmandu has confirmed a dual listing in both Australia and New Zealand with the launch of its IPO this afternoon.

The company will offer between 166.9 million and 197.4 million shares or 84-99% of the issued capital to investors.

The shares will be priced at between $A1.65 and $A1.90 ($NZ2.01 – $NZ2.32), raising a total of between $NZ338.6 and $NZ457.2 million.

It consists of a retail offer and an institutional offer, with the retail offer opening on October 27 and closing on November 6.

After the institutional bookbuild, the shares will then begin normal trading on the NZX on November 18.

They will also begin trading on the ASX on a deferred settlement basis on the same day, before normal trading commences two days later.

Chairman James Strong said the company's kiwi heritage still played a major part in its image, one that would continue with the dual listing.

Despite some concerns that kiwi investors could be left out in the cold with a secondary listing, the company said it was treating both listings as primary listings.

Kathmandu is currently owned by Goldman Sachs JBWere and Quadrant Private Equity after they purchased the business from founder and NBR rich-lister Jan Cameron in 2006 for a reported $A400 million.

It currently has more than 80 stores in Australia, New Zealand and the UK.

The company is focusing on the Australasian retail scene over the next two to three years, with plans to open more than 70 new stores in Australia and New Zealand.

At today's IPO announcement, chief executive Peter Halkett said the company had identified 18 possible locations in New Zealand, including Gisborne and Hastings.

The Kathmandu IPO has been tipped for some time, with the company following in the footsteps of Australian department store group Myer, another Australian retailer sold into a stock-market floatation by private-equity owners when it launched its $A2.3 billion IPO earlier this month.

A third Australian retailer – Ascendia – is also expected to float soon.

[Share Investor]

Valuecruncher analysis of Kathmandu IPO based on several different scenarios. (See attachment below)

valuecruncher-valuation-report-kathmandu-ipo-estimates-20091007.pdf

[Share Investor]

Kathmandu IPO prospectus 5.6MB PDF

KMD_Replacement_Prospectus_FINAL.pdf

[Bongo666]

The lack of a definite share price is a big indicator that the sellers don't know what their company is worth either.

[Share Investor]

According to Bloomberg the Kathmandu IPO looks to be oversubscribed.

See attachment below for more.

Kathmandu Retail Share Sale to Be Oversubscribed.docx

[Share Investor]

Prospectus date Friday, 23 October 2009

Retail Offer opens Tuesday, 27 October 2009

Retail Offer closes 5:00pm AEDT/NZDT, Friday, 6 November 2009

Institutional Offer and Institutional Bookbuild opens Tuesday, 10 November

Institutional Offer and Institutional Bookbuild closes Wednesday, 11 November 2009

Pricing and allocation announced Thursday, 12 November 2009

Expected commencement of trading on ASX (conditional and deferred settlement basis)
and on NZX (conditional settlement basis) Friday, 13 November 2009

Institutional Offer settlement and last day of conditional trading Tuesday, 17 November 2009

Shares expected to begin trading on a normal basis on NZX Wednesday, 18 November 2009

Expected despatch of holding statements and any refund payments if required Thursday, 19 November 2009

Shares expected to begin trading on a normal settlement basis on ASX Friday, 20 November 2009