Electronics retailer Dick Smith is set to list on the Australian share market early next month in a bid to raise $A344.5 million.
That's a huge turnaround from the $94 million private equity group Anchorage Capital Partners bought the chain for from Woolworths just a year ago. Anchorage plans to keep 20% of Dick Smith.
The electronics chain has 359 stores in New Zealand and Australia and expects to generate sales of $1.2 billion in the 2014 financial year.
It has 61 stores in New Zealand, employing 550 staff, and the company plans to improve the Dick Smith brand here.
Dick Smith says it has undergone a significant transformation under the ownership of Anchorage.
Operating profit is forecast to more than triple to nearly $71.8 million in the 2014 full year, up from the $23.4 million it made in 2013.
The prospectus says Dick Smiths' growth initiatives are well underway in Australia, but yet to be introduced in New Zealand.
It says 2014 will be a transition year for its operations in this country, as it introduces a new pricing structure, improved supplier terms, store productivity improvements and marketing.
However, it says New Zealand's like-for-like sales will decline nearly 16.9% in the 2014 year.
The prospectus says Dick Smiths' current strategy could be delayed, costs may overrun and it may not be successful at all, making the risks to the business greater in New Zealand.
