Redbubble announces Initial Public Offer

Melbourne, 19 April 2016 - Redbubble, the online creative marketplace powered by independent artists, today announced an Initial Public Offer (IPO) of shares in Redbubble at an offer price of $1.33 per share to raise $30 million with a $9.8 million sale by existing shareholders. The Offer is fully underwritten by the Joint Lead Managers, Morgans Corporate Limited and Canaccord Genuity (Australia) Limited.

The funds raised will provide Redbubble with capital to enable it to pursue its growth strategy, while allowing early investors in Redbubble to realise some of their investment. Following completion of the Offer, new shareholders will hold 14% of the Shares on issue.

Redbubble’s Chairman, Richard Cawsey, said that the Board looked forward to welcoming new shareholders to Redbubble.

“Redbubble mission is to create the world’s largest marketplace for independent artists. It is one of a small group of Australian technology companies that are genuine global leaders in their space. At the core of this success is the rise in consumer demand for distinctive products coupled with the ever-increasing possibilities of print-on-demand technology. Redbubble’s organic growth positions the company to deliver strong financial returns.”

“Our Board and executive team has deep online marketplace, e-commerce, logistics and finance experience. We are excited to be leading Redbubble in the next stage of its development as a publicly listed company” said Cawsey.

Redbubble CEO and Co-founder, Martin Hosking said, “Redbubble has a strong track record of delivering growth. In the half-year to end of December 2015 we had Gross Transaction Value of $80.6 million ($78.0m on a constant currency basis1[1]), representing growth of 55% on a constant currency basis compared to the half year to the end of December 2014. We are forecasting full year GTV of $143.5 million for FY 2016.”

“We’ve driven this growth by continuing to invest in marketplace fundamentals with a focus on geographic expansion, enhancing the website experience, growing the product offering and improving the experience for the artists. The funds raised will enable us to continue the investment into our people and systems.”

“I look forward to working with the team in implementing our growth strategy as we create a company of enduring value and true global significance out of Australia”.

The Offer comprises:

  • a Broker Firm Offer, which is open to Australian resident investors who are not Institutional Investors and who receive a firm allocation of Shares from their Broker;
    and
  • an Institutional Offer which consisted of an invitation to bid for Shares made to Institutional Investors in Australia and a number of other eligible jurisdictions.

On completion of the Offer, Redbubble will have a market capitalisation at the offer price of $267 million.

EM Advisory is the Corporate Advisor to Redbubble.

The current timetable for the offer is as follows:

Prospectus lodgement date Tuesday, 19 April 2016
Broker Firm Offer opens Thursday, 28 April 2016
Broker Firm Offer closes Wednesday, 11 May 2016
Settlement of the Offer Thursday, 12 May 2016
Completion of the Offer (issue and transfer of Shares under the Offer) Friday, 13 May 2016
Expected commencement of trading of Shares on the ASX on a deferred settlement basis Monday, 16 May 2016
Expected dispatch of holding statements Monday, 16 May 2017
Expected commencement of trading Shares on the ASX on a normal settlement basis Tuesday, 17 May 2016
*These dates are indicative only and subject to change.

Prospectus availability

“The Offer is being made by Redbubble Limited and Redbubble SaleCo Limited pursuant to the Prospectus lodged with ASIC on 19 April 2016. Redbubble SaleCo Limited is a special purpose vehicle established to facilitate the sale of Existing Shares by the Selling Shareholders.

The Prospectus is available in electronic form at http://rdbl.co/1qUP3By. A paper copy of the Prospectus may be available through a Broker to eligible investors under the Broker Firm Offer.

“The addition of Chris to the Senior Leadership Team and of Grant to the Board, continues our focus on improving corporate governance in preparation for a potential IPO,” said Cawsey.

The addition of the new roles has seen Redbubble double its headcount over the last two years. As of 1 March there were 158 people working at Redbubble, with 90 based in the Melbourne office.

The Offer of Shares will be made in, or accompanied by, a copy of the Prospectus. Anyone considering acquiring Shares under the Offer should read the Prospectus carefully and in its entirety before deciding whether to apply for Shares. Anyone who wants to acquire Shares will need to complete the application form that will be in, or will accompany, the Prospectus.

Capitalised terms in this release have the meaning given to them in the Prospectus.

For further information about the prospectus or the Offer, please call Morgans Corporate Limited on 1800 658 206 (within Australia) from 8.30pm to 5:30pm (Melbourne time), Monday to Friday.



1[1] Constant currency numbers are derived by taking the original currency value of the relevant metric and converting it at the same exchange rate used in arriving at the Australian dollar equivalent of the same metric in the comparison period. The exchange rates for the comparison period are based on those assumed for FY2017 as set out in Section 4.7.2 of the Prospectus.


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About Redbubble

Founded in 2006, Redbubble is a global online marketplace powered by 399,000+ independent artists. Redbubble’s community of passionate creatives sell uncommon designs on high-quality, everyday products such as apparel, stationery, housewares, bags, wall art and so on. Through the Redbubble marketplace independent artists are able to profit from their creativity and reach a new universe of adoring fans. For customers, it’s the ultimate in self-expression. A simple but meaningful way to show the world who they are and what they care about. In FY 2015, 1.44 million buyers shopped in the Redbubble marketplace and, since its launch in 2007, artists have earned over $44 million through the marketplace.

Important Notices

This release is not financial product advice and has not taken into account any person's objectives, financial situation or needs. It is important that investors read the Prospectus in full before deciding to invest in the Shares and consider the risks that could affect an investment in the Shares, including the ongoing performance, financial position and solvency of Redbubble. Investors should seek advice from their financial adviser or other professional adviser before deciding to invest in the Shares.

This release does not constitute an offer of any securities for sale or issue. In particular, this release does not constitute an offer of securities in the United States.

Media Contacts

Caroline Shawyer, The PR Group — Tel: +61 (0) 401 496 334 — E: caroline@prgroup.com.au
Kate Winney, The PR Group — Tel: +61 (0) 403 200 299 — E: katew@prgroup.com.au

Investor Contacts

Natasha Mandie, EM Advisory — Tel: +61 (0) 411 113 264 — E: natasha@emadvisory.com

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