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Posted: 2016-07-07 00:05:07

Ruslan KoganOnline retailer Kogan.com will make its stock exchange debut during a volatile time for global markets as it lists today on the ASX, but founder Ruslan Kogan is unperturbed.

The aftershocks of the UK’s Brexit vote, coupled with uncertainty around Australia’s federal election outcome mean the online shopping business could face a tough environment when it starts trading on the ASX at midday.

Company founder and chief executive Kogan, who retains a 50.5 per cent stake in the business, is not concerned.

“I don’t lose too much sleep over things we can’t control,” the 33-year-old entrepreneur told AAP.

“Yes there’s been Brexit and a potential hung parliament. There will always be external factors, some will be negative and some will be positive, but we are 100 per cent focused on things we can control.”

The company has raised $50 million through a $1.80 a share initial public offering to institutional investors only, and is set to list with a market capitalisation of $168 million.

Kogan said the float will release the company’s capital constraints and allow it to focus on growing its privately labelled product range, which have a higher profit margin than third-party branded products.

It will also allow the company to grow its recently launched Kogan Travel platform and its privately labelled smartphone Kogan Mobile.

The company has about 28,000 products across private and branded labels, with the private label products including fitness equipment, homewares, camping gear, hardware and pet accessories.

Kogan’s FY17 revenue is forecast to be $241.2 million with earnings before interest, taxes, depreciation and amortisation (EBITDA) of $6.9 million.

Kogan said the integration of the recently acquired Dick Smith Australian and New Zealand online businesses was going well.

Dick Smith has not been included in Kogan’s sales forecasts due to its limited trading history as part of the Kogan empire.

AAP

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