Catching the Catch of the Day
Gabby Leibovich started out selling items on eBay from home - now he's Australia Post's biggest customer.PT0M0S 620 349
Australia's largest online only retailer Catch of the Day could consider a float that would value the company at $600 million, the company's chief said.
A public offering would see the company's market capitalistion at roughly half the size of upscale department stores David Jones and more than half of Myer.
"It's definitely something that is a logical possibility for a business like this," said Catch of the Day chief Paul Reining.
While Mr Reining cautioned that no IPO plan was currently in motion, recent changes at the business to improve governance and internal reporting would support such a move, he said.
"So if that opportunity comes up in the future for an IPO or another investment, you're ready for that," he said.
Catch of the Day, founded by brothers Gabby and Hezi Leibovich in 2006 out of their Melbourne garage, has grown rapidly in recent years by exploiting the hole in the online retail offering left by Australia's established retailers. Sales at the company have doubled to more than $250 million in the past 15 months, even as traditional retailers such as David Jones, Myer and Harvey Norman struggle to grow in an environment of reduced spending.
In June, James Packer's Consolidated Press Holdings and investment firm Tiger Global, as well as Andrew Basset of job search site Seek, invested $80 million in Catch of the Day, which valued the company at $200 million.
Mr Reining, a former JB Hi Fi group financial controller, was named group CEO, with former Korda Mentha director Seamus Byrne brought on as chief information officer, in a move viewed as improving the internal operating of the company and positioning it for further investment.
In recent months, the company has branched out into the daily deals space with the launch of the group buying site Scoopon, grocery site GroceryRun, and Vinomofo, an online wine sales site. The company plans to double its value each year, as appetite for online purchasing in Australia grows to levels seen in the US and Europe.
"If we do all the right things over the next couple of years, ideally you'd have many options," Mr Reining said.