It was not the most auspicious of occasions - described as a 'backdoor listing' by one news source - but it looks like being the thin end of a wedge that could see other Australian etailers find their way to the ASX.
Australia's Deals Direct today became the first pureplay online retailer to trade its shares on the Australian Stock Exchange.
Deals Direct, a deep-discount department store with an acquisitive management team, is regarded as one of the 'big four' Australian online retailers alongside OzSale, Gray's Online and Catch Of The Day. It raised AU$6.2 million through a reverse takeover of Mnemon, a former mobile firm company that was due to be delisted.
The firm plans to use the money for further acquisitions and co-founder Paul Greenberg told Australian news site SmartCompany that he expects 'more action' in the sector in terms of IPOs and corporate activity this year.
He said the economic difficulties over the past few years have been difficult for retailers across the sector to raise capital and grow. 'All that got in the way of the smooth progression to market of those large online retailers,' he says. 'But that that's changing now.'
Only last week flash sales site OzSale confirmed that it plans to list within six months after it appointed Macquarie as its adviser on the plan. OzSale.com.au operates as similar model to France's Vente-Privée and received AU$14.5 million from Insight Venture Partners, a Twitter investor, in 2010.
OzSale CEO Carl Jackson told Power Retail: 'The first issue we faced was that, because it was a new channel, it was difficult to get people to understand what the concept was. That's completely changed now - every brand we talk to knows the model, knows the space and is quite active.'
There have also been suggestions that CatchOfTheDay.com.au, which also operates general merchandise and ambient grocery site GroceryRun.com.au, may seek to float with a possible valuation of AU$600 million (£319 million).
CatchOfTheDay was founded by brothers Gabby and Hezi Leibovich and is understood to be Australia's largest ecommerce group with sales in 2012 of AU$230 million (£121 million).
In September 2012 the Australian Fiancial Review reported that the online retailer, backed by James Packer, the son of the late Australian media mogul, might launch the plan within two years.
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