Signature makes Olivia brand new
By Katherine Jimenez
TWELVE years after the collapse of her Konla Blue brand, Olivia Newton-John’s label has been revived as the cornerstone of a $8 million float of retail company Signature Brands.
Signature is a retail brand company created by chief executive Sean Neylon-the founding share holder of internet media company LibertyOne and non executive chairman Ian Duffell, the former boss of music and lingerie retailer Brazin.
Koala Blue is just one of several high profile Australian brands owned by Signature. They include the resuscitated Brian Rochford swimwear label, children’s clothing line Ozi Varmint and Olivia Wines.
Koala Blue was originally an apparel retail company co-founded by Ms Newton-John and Pat Farrar in 1983, It collapsed nearly 10 years later under financial pressure and was bought in 2001 by SBL. which relaunched it as a wine company the next year. Brian Rochford also collapsed for financial reasons.
However, Mr Duffell said the brands still attracted “huge demand”. “People are supporting it because it’s an Aussie battler, he said.
Signature is due to list on the Australian Stock Exchange next week after several months of planning.
It joins a long list of companies to be floated in the past year, including car parts group Repen, JB Hi-Fi and construction group Multiplex. Nearly 20 new listings are planned this year.
Investor response to Signature’s float has been strong, with the placement closing oversubscribed and ahead of schedule.
The original placement was for about 25 million shares but was later increased to 3.2 million just over half of the company shares because of strong demand. The issue price was 20c, with KTM Capital acting as underwriter.
Institutional takers were Wilson Asset Management and Rothschild Asset Management.
Mr Neylon and associated interests hold about 23 per cent of the company. with Mr Duffell holding 1.5 million shares, Jaqueline Major, who created Ozi-Varmint, 2 million shares; and Ms Newton-John and Mr Rochford each retaining 500,000 shares.
The company’s prospectus shows that it is targeting a net profit before amortisation and goodwill of $695,000 in 2003-04, or 23c earnings a share. Its price earnings multiple in 8.6. Proceeds from the float will be used to expand existing brands and buy new ones.