Australian retailer Best & Less Group (ASX:BST)
has listed on the ASX today, following a successful initial public offering (IPO) that raised $60 million at $2.16 per share.
The company's market capitalisation at the offer price is $271 million. The IPO had significant excess demand and was well supported by institutional and retail investors. The IPO follows a $40 million equity investment from BB Retail Capital (BBRC), a private investment firm founded and chaired by retail entrepreneur Brett Blundy. Mr Blundy will shortly join the Best & Less Group board as BBRC’s nominee.
Best & Less (BLG) operates an omnichannel sales network with a vertical retail model. 86 per cent of sales are generated from BLG’s proprietary brands sold exclusively across its network of 246 physical stores and its online channel.
BLG delivered a strong trading performance in FY21 following continued growth in the babywear, kidswear and womenswear categories, increased average basket size, customer conversion rates and online penetration.
Shares in Best and Less Group (ASX:BCG)
are trading 6.5 per cent higher at $2.30.