Booktopia shelves ASX listing due to ‘cooling market sentiment towards retailers’
Online bookseller Booktopia has backed away from its plan to list on the Australian Stock Exchange due to institutional investors’ cooling market sentiment towards retailers, reports the Australian.
The feedback follows an investor roadshow from backers Morgans and Ord Minnett last week. As previously reported by Books+Publishing, Booktopia was seeking to raise $30m through a primary raise and $10m through a selldown by existing investors, ahead of a potential listing on the ASX in November. A $2 share price had implied a $105m market value upon listing.
The Australian reports that a number of recent disappointments in the retail sector were weighing on fund managers, despite double-digit revenue growth over several years. Other investors questioned how Booktopia would fight off potential competition from Amazon.
According to the Australian, Booktopia will consider investment from other trade buyers or private equity as an avenue for growth. Books+Publishing has contacted the company for comment.
Category: Local news