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- Designer luxury online retailer Cettire (CTT) has listed on the ASX after completing a $65 million initial public offering (IPO)
- Based on the IPO price of 50 cents per share, Cettire had a market capitalisation of $190.6 million on listing
- The new cash will allow Cettire to increase its marketing spend with the objective of boosting brand recognition, improving traffic and conversion rates, as well as invest further in its technology platform
- Cettire will also direct some of the funds into expanding its product range and supplier network as well as moving into new markets
- Shares have been trading 5 per cent lower at 47.5 cents
Cettire (CTT), the owner and operator of designer luxury fashion website Cettire.com, has listed on the Australian Securities Exchange.
It follows an initial public offering (IPO), at 50 cents per share, which raised the company $65 million. Based on the IPO price, Cettire had an initial market capitalisation of $190.6 million.
Founder and CEO Dean Mintz said the IPO represents a key milestone in the company’s growth history.
“I would like to thank the entire Cettire team for their dedication, commitment and hard work, that has enabled not only this successful IPO, but also the continued strong growth of the business.”
“I welcome our new shareholders and look forward to delivering on the potential we see for the business and growing shareholder value,” he added.
A large chunk of the funds raised will be used to increase the company’s marketing spend, to support its objectives of boosting brand recognition, improving traffic and conversion rates. Cettire will also invest further in its technology platform.
Additionally, the company will use some of the new cash to expand its product range and supplier network as well as help it move into new markets.
According to the company’s latest unaudited figures, in November Cettire achieved record gross revenue of $13.9 million, 432 per cent more than in November 2019.
Active customers, defined as having made a purchase with the platform in the past 12 months, has also grown by more than 300 per cent in the same period to 59,195.
Although returning customers were responsible for more than a third of the gross sales revenue in November, as opposed to only 26 per cent of sales revenue from returning customers over the 2020 financial year.
Cettire’s unaudited results for the 2021 financial year to date show gross revenue is at $41.6 million and sales revenue at $32.4 million, well on its way towards its $89.1 million and $70 million respective forecasts for the full financial year.
Shares have been trading 5 per cent lower at 47.5 cents at 2:29 pm AEDT.
