BuyQuick, one of the few technology e-tailers to survive the dot com crash, is seeking $2 million in capital from new investors and is planning to launch an initial public offering on the Australian Stock Exchange.
The owners of the Perth-based e-tailer, two young businessmen who established the company with little more than a $15,000 bank overdraft, claim it is growing at over 100 per cent a year.
Joint chief executive officer for BuyQuick, Andreas Adamides, said that 50 per cent of the capital the company was looking to raise prior to going public would be used to step up marketing activities to expose the e-tailer to “a wider audience”.
A further 25 per cent would be used for infrastructure upgrades and the remainder as working capital.
While a target of $2 million has been set, Adamides told ARN that he believed the company only required about $500,000 at this stage. Any amount over that would be “accepted as over-subscribed and at the discretion of the BuyQuick board”.
The e-tailer heralds its “virtual” distribution model, in which it takes orders but does not fulfil them, as integral to its success to date.
The business’ owners have formed relationships with several “key wholesalers and distributors” who stock and ship products on the e-tailer’s behalf. The company claims this gives it access to over $120 million in stock and over 25,000 products, without carrying any of the risk.
Adamides refused to name any of the e-tailer’s IT distributor partners.
He expected that the company would float on the ASX by the second quarter of the 2004 financial year.
After floating, Adamides claimed the company would pursue opportunities abroad in the UK.