MERINO & CO. LIMITED (Proposed ASX code:MNC) INITIAL PUBLIC OFFER (IPO) - CLOSED

MERINO & CO. LIMITED (Proposed ASX code:MNC) INITIAL PUBLIC OFFER (IPO) - CLOSED

Merino & Co Limited (Proposed ASX Code: MNC)
Initial Public Offer (Offer)

Lodge Corporate, the Lead Manager, has invited Marketech Focus clients to participate in the Initial Public Offer (Offer) for wool apparel company Merino & Co Limited (Proposed ASX Code: MNC). The Company is seeking to raise up to $7,500,000 (before costs) through the issue of up to 37,500,000 Shares at a price of $0.20 per Share, pursuant to the Initial Public Offer. The Offer is subject to a minimum subscription requirement to raise at least $6,000,000.

Established in 2013, Merino & Co is a vertically integrated company, involving the manufacture, marketing and sale of wool products. The proceeds of the Offer will be used to expand production capacity, fund preparation of stock for wholesale orders, fund marketing and branding, including for online platforms,  fund research & development and fund corporate expenses, working capital and costs of the offer. Full use of funds can be found in the Prospectus. 

Applicants are now invited to subscribe for New Shares under the Offer. A selling fee 4.0% (plus GST) will be available on success applications.

Bids for the Offer should be lodged by 3.00pm (AEST) on Friday 30, August 2024. The Lead Manager reserves the right to close the offer early subject to demand.

Please review the prospectus before placing any bid.

Prospectus | MerinoSnug

Company Overview
Established in 2013, Merino & Co is a branded lifestyle clothing and accessories company based in Perth, Western Australia. The Company manufactures, markets and sells wool apparel and accessories, predominately featuring fine Merino wool, to both Australian and international markets.

Merino & Co is a vertically integrated Company, involving the manufacture, marketing and sale of wool products. The Company has over 600 points of sale spanning across Australia, selling wool clothing and accessories from its own showrooms as well as at duty free shops, airports, boutique shops, tourism sites, and generally via wholesalers and agents.

The Company has also been exporting and selling direct to international markets, including China, Japan and North America, where high-quality wool products are in higher demand owing to colder climates.
Investment Highlights
Iconic and innovative brands & products
  • The Merinosnug range, except throws, carries the iconic "Australian Made" logo. manufactured with Shima Seiki knitting machines. MerinoSnug products, knitted from merino-possum blend yarns, command a  premium  from  discerning customers
  • The Hysport brand is a pioneer in the next-to- skin wool industry and is a key addition to the Merino & Co family. The Hysport product offer encompasses underwear,  thermals, lightweight  summer garments and winter layering pieces.
  • Other brands names currently held by Merino & Co include Auzwool Family, OnlyMerino, OnlyAlpaca and OM Kids which can be leveraged for future range expansion.
Domestic & global distribution Channels
  • The Company has over 600 points of sale spanning across Australia, selling wool clothing and accessories from its own showrooms as well as at duty free shops , airports, boutique shops, tourism sites, and generally via wholesalers and agents.
  • The Company has also been exporting and selling direct to international markets, including China, Japan and North America, where high-quality wool products are in higher demand owing to colder climates.
Strategic marketing Initiatives
  • Merino & Co’s wool-based products are made and/or partially made in Australia and are assembled in both Australia and China. As such , many of the company’s products currently carry the iconic “Australia Made” logo.
  • The Company plans to relaunch their brand via the domestic tourist markets, expand international distribution channels, explore additional online channels and partner with leading luxury brands.
  • Merino & Co will look to partner with other leading luxury apparel to access more channels and enter into the corporate and sports uniform market.
  • The Company is seeking to establish a global Merino wool brand, based in Australia, that delivers high-quality Australian products to customers worldwide.
Raw, natural materials
  • The Company is a strong advocate of the benefits of wool as a natural fibre and is strong supporter of the proliferation of more sustainable, renewable, and biodegradable products made from environmentally friendly and raw natural materials such as wool, alpaca and possum.
  • The Company is a supporter of the farm to fashion supply chains and slow fashion ideals and as such is supportive of the Australian Wool Network (AWN) direct network advantage (DNA) wool program that provides provenance to discerning consumers.  
Experienced & passionate management
  • Led by Tim Kang (COO) and Fiona Yue (CEO), both heavily involved in the management and collaboration with Kingdeer and Erdos, two of the world’s largest cashmere producers.
  • Supported by the Australian Wool Network (AWN), one of Australia’s largest independent wool marketers. AWN is currently a substantial shareholder of the Company.
Large addressable market
  • Australia is the largest producer globally of Merino wool, producing an estimated 80% of the global total of 304 million kg in 2023. (International Wool Textile Organisation (IWTO), Market Information, 2023). Australia is the only significant exporter of superfine grades of wool, estimated to account for over 60% of the global wool trade by value. (Commodity.com, Wool In 2023: What Drives This Commodity’s Market Value? accessed July 2024 from https://commodity.com/soft-agricultural/wool/).
  • In 2023, the global Merino apparel retail market (at retail prices) was estimated at $730 million, having grown from $610 million in 2018, and forecast to reach $780 million in 2025 with a CAGR of 3.6% between 2018 and 2025. (Frost & Sullivan estimates, July 2024).

Timetable (Dates & times are indicative only and may change without notice)

Acknowledgement

By clicking “Submit Bid” on the website form, you acknowledge and agree that:

  • You have read and understood the terms and conditions to access the electronic version of the Prospectus; 
  • You are an Australian resident and you are requesting a copy of the Prospectus from within Australia;
    OR
    If you are a non-Australian resident, you have consulted your professional adviser as to whether any governmental or other consents are required or whether any other formalities need to be considered and followed before accessing the Prospectus.
Marketech clients can bid for the offer by clicking the link below and including account number and bid amount/shares.

In order to be eligible for this allocation, you need to have:
  1. a current subscription to the Marketech Focus platform;
  2. a Marketech trading account number and HIN;
  3. a Macquarie CMA linked to your trading account
  4. read and understood the Prospectus;
  5. Bids under the Offer must be for a minimum of $2,000 worth of Shares (10,000 Shares) and thereafter, in multiples of $500 worth of Shares (2,500 Shares).
Please note:
  1. The Company and Lead Manager reserve the right to close the book early and to deem any bid invalid;
  2. All bids which have not been withdrawn by the closing time of the offer will represent irrevocable commitments  to subscribe for a number of Securities up to the maximum amount for which a bid is made and will be capable of acceptance in full or in part by the Lead Manager, at its discretion;
  3. Marketech will be paid a fee on amounts raised under this offer.

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