Clothing manufacturer Merino & Co has joined the ASX, ringing the bell to open trading as one of rare cohort of Perth-based companies to take the IPO journey this year.
A little over $515 million has been raised in nine floats this year, with Merino & Co representing just over $6.3 million in that, a little shy of its $7.5 million maximum subscription offer to sell 47 per cent of its business to new investors.
The company, which raised the capital at 20 cents per share, is now 43 per cent held by IPO investors, about 19 per cent by those who were convertible noteholders and about one third by management.
Led by managing director Fiona Yue, the local manufacturer wants to use the IPO to reset the business after a challenging pandemic-disrupted period which hit both its exports and domestic sales via inbound tourists.
Merino & Co’s numbers have strengthened in the past year and the company, which trades as MerinoSnug, wants to invest in machinery to further automate garment production.
It opened trade at 20.5 cents apiece. Its shares last changed hands at 23.5 cents, up about 13 per cent at 2PM AWST.