Booktopia's experience with
Crowdfunded Equity Capital Raising:
What the Future Holds for Entrepreneurs and Businesses
TUESDAY 5 FEBRUARY
11:00 AM - 11:45 AM
In 2016, Booktopia looked listing on the ASX. The offer costs to raise $30m through an IPO
was going to be $8m. The concept was shelved because Amazon announced they were coming to Australia in the same month so the fund managers were not keen to invest at that time.
Cost of going public
"Underwriting makes up the largest component of IPO costs by far. Based on the public registration statements of 315 companies, on average, companies incur an underwriter fee equal to 4-7% of gross proceeds, plus an additional $4.2 million of offering costs directly attributable to the IPO. Legal and Accounting fees also add up and can increase significantly for larger companies that may face additional complexities in preparing for an IPO."
Two years later, in late 2018, Booktopia announced they were doing a Crowdfunded Equity Capital Raise of up to $10 million. The costs to raise $10 million through the Crowdfund platform operated by Equitise is $290K.
This is a significant shift in the way companies can raise capital at a fraction of the cost than ever before. It is clear that this is another way businesses, and in particular online retailers, can disrupt an industry that has been charging excessive fees for decades.
Tony Nash, the Chief Executive Officer of Booktopia, is making himself available to share his views on this new and exciting way of accessing capital and how it will impact the way the financial markets think about their value proposition.
Tony says, "When we looked at an IPO we were thrilled that Booktopia customers could own a piece of a company that they were extremely passionate about. Then we found out that our customers were never going to be invited through that model. Over 5 million Australians have bought from Booktopia. Crowdfunded Equity Capital Raises gives our customers and the general public the opportunity to own shares in a company they believe in. I love disruption and this is an exciting way to own shares in Booktopia, knowing that a hefty chunk of cash is not being used to raise the funds in the first place."
Join Paul Greenberg and Tony Nash in our next NORA webinar to have a chat about Crowdfunded Equity Capital Raising, e-Commerce in 2020s and what the future holds for Australian entrepreneurs and businesses.
CHIEF EXECUTIVE OFFICER, BOOKTOPIA
Tony Nash started his first internet business in 1996. In 2004 Tony founded Booktopia, an online bookstore, with an allocated budget of $10 a day. The company’s first book sold in 3 days. Fast track ten years and Booktopia now sells one book every ten seconds, with an annual turnover of $115 million a year. It was listed in BRW’s Fast 100 from 2009 to 2014, 2016 and 2017, and was voted Australia’s Favourite Bookshop by the Australian Booksellers Association.
Tony is an entrepreneur, founder and chief executive officer in online retail. With a background in recruitment, programming, business development, selling, SEO and internet marketing, Tony has developed outstanding negotiation and leadership skills with a thorough understanding of sales, forecasting, bootstrapping, PR, empowerment and managing an executive team.
FOUNDER, NORA NETWORK
Paul is an entrepreneur, cheerleader of New Retail, and a top 50 online retail expert with over 35 years’ experience in retail, technology and entrepreneurship. As the founder and Executive Director of NORA, Paul is passionate about uplifting the spirits of retailers nationwide and looks to provide a more holistic and optimistic approach to retail in Australia. Paul’s career has focused on entrepreneurship and start-ups, mainly in retail and technology, as well as directorships in commercial enterprises and charities, and investment in start-ups.
In FY18, Booktopia had revenues of $113.9m. A decade earlier, revenue for FY09 was $9.4m. Booktopia employees over 200 people, has $10m of automation, 150,000 titles in stock ready-to-ship from its 13,000 sqm Headquarters and Distribution Centre, it has built its own website, WMS, proprietary pricing and ordering algorithms, internal software, automation software and most importantly donated over $750K in books and cash to literacy based projects in Australia. Started as a side project on a $10 per day budget back in February 2004, Booktopia has had high double digit growth for 15 years straight and is the only company to make the AFR/BRW Fast 100 eight times. To date the company has had no external investment. All of the above has been accomplished from that original $10 note. Booktopia is a multi-award winning business as an e-Commerce website, an Australian business, a national bookstore and for its social responsibility.