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KOGAN.COM (ASX:KGN) has made a soft debut on the stock exchange, with the online retailer's share price falling up to 30 cents.
The Melbourne-based company raised $50 million through an initial public offering to institutional investors at $1.80 per share.
Kogan launched with a market capitalisation of $168 million at midday, after the original float was delayed by a week.
The company had to lodge a revised prospectus with the Australian Securities and Investment Commission to address disclosure issues.
Founder and CEO Ruslan Kogan will retain a 50.5 per cent stake and share a $15 million payout with business partner David Shafer.
The capital raised in the float will be invested in expanding the company's highest-margin product ranges, as well as fund growth opportunities Kogan Travel and Kogan Mobile launched last year.
"It's in our DNA to start new initiatives small, prove their value and scale them organically in a profitable manner," Kogan says in a statement to the market.
"We will strive to strike a balance between short-term profitability and investment in long-term vision and growth for the company."
Kogan has forecast net profit to tip $6.5 million in FY17, with revenue expected to increase 20 per cent to $241 million.
The online relaunch of Dick Smith hasn't been included in the forecast due to its limited trading history.
Kogan started selling private label TVs from home in 2006, growing the business to about 28,000 products available on the platform. This is the first time the company has received external funding.
Shares in Kogan are trading at about $1.58 each.
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