Baby Bunting Set To Hit The Stock Market

By Rory Betteridge | 22 Sep 2015

Victorian-based baby goods retailer Baby Bunting will launch its IPO next month, with an eye to expanding its reach nationally.

As predicted back in July, baby goods retailer Baby Bunting is set to make its debut on the Australian Stock Exchange next month.

The company, which released its prospectus earlier today, expects to raise $52 million from its IPO, which will be used to expand its base of physical locations from its current 33 into the 70s. Targets for the new stores include regional cities such as Ballarat, Bendigo, and new markets such as Newcastle and the Gold Coast.

“Our growth strategy allows Baby Bunting to steadily and strategically expand its geographic footprint while maintaining a consistent retail offer and customer experience,” Baby Bunting Chief Executive Matt Spencer told The Australian. “We currently have a strong base in Victoria and will be looking to open between four and eight new stores each year to expand our national network.”

Current private equity holder TDM Asset Management will retain its 30 percent majority share, with about 30 percent of the company to be made available to the public next month.

The impending debut raises questions about the baby goods market; big-name rivals Babyco and Mothercare have both hit the wall in recent years, and the recent underperformance of other equity offers from Pacific Brands, Myer and others put a question mark on the offer. But despite that, investors remain optimistic.

Baby Bunting is expecting sales of $218.6 million this financial year, driven in part by a solid online retail offering that covers a wide range of products, and offers swift, affordable delivery, comprehensive returns policy and other ancillary services.

 

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