Merino & Co raises $6.35m in its debut on the ASX
Merino & Co (ASX: MNC) which specialises in Australian wool clothing and accessories, recently launched the Australian Securities Exchange following an initial public offering that raised $6.35 million. The company saw a positive market reception, with its stock experiencing notable gains in the first week of trading.
Transaction snapshot
Deal value: $6.35 million
Deal multiples: EV/Revenue 3.8x, EV/EBITDA 34.2x, EV/EBIT 65.6x
Deal type: IPO
Merino & Co’s shares debuted at $0.20 per share on 30 October, closing at $0.235 by the end of the day—a 17.5% increase. Within a week, the stock further surged to a high of $1.50, reflecting strong investor interest. The company’s market entry reflects its established reputation in the wool industry, built since 2013 with significant backing from the Australian Wool Network (AWN). AWN supplies Merino & Co with fine merino wool sourced from over 10,000 Australian farmers, supporting its growth strategy focused on expanding into markets across the United States, China, and Europe.
Founders Mr Kang and Ms Yue bring over 40 years of combined experience in the cashmere and wool sectors, having previously held roles at Kingdeer and Erdos, two of the world’s largest cashmere producers. Their expertise spans manufacturing, trade, and strategic development, with Merino & Co’s production split between factories in Perth and China. The company’s product lines include Australian-made Merinosnug items and China-produced Auzwool Family products, covering scarves, sweaters, and more.
Merino & Co currently operates over 600 points of sale across Australia, including showrooms, boutiques, and airport outlets, along with international sales in Japan and North America. Ms Yue highlighted increasing demand for high-quality wool undergarments and revealed plans to introduce a new range of merino wool socks and leggings.
Additionally, the company is part of an innovative thermotextile project in partnership with Queensland University of Technology and the University of Queensland, co-funded by the federal government. The project aims to develop eco-friendly, wearable thermoelectric textiles to provide low-emission heating and cooling solutions, with potential applications in wearable electronics and clothing.
Australia remains the world’s leading producer of merino wool, responsible for approximately 80% of the global production, and holds a dominant share of superfine wool exports. The global merino apparel retail market, valued at $730 million in 2023, is projected to grow to $780 million by 2025, underlining the potential for Merino & Co’s continued expansion and influence within the sector.
