KMD Brands lines up capital raise to fund turnaround

25th March 2026 By Paul Yandall | paul@propertyticker.co.nz | @propertyticker

KMD Brands is preparing a capital raise amid a strategic reset for the 608-store business.

The dual-listed company confirmed today its plans to raise equity via a placement and accelerated entitlement offer, with a trading halt requested on the NZX and ASX while terms were finalised alongside its half-year results.

The retailer, which owns the Kathmandu, Oboz and Rip Curl brands, is seeking to fund its ‘Next Level’ strategy which aims to turn around recent sales and profitability declines.

“KMD has commenced a confidential wall crossing process with select investors,” the Christchurch-headquartered company, formerly known as Kathmandu, said.

“KMD is continuing discussions to finalise the terms of the capital raising.

“KMD notes that it is effectively conducting an extended book build for a private placement, and there is a risk of material information leaking ahead of the formal announcement of the capital raise.”

The company said a trading halt was required to maintain an orderly market while it finalised the details of the capital raise.

“We expect the trading halt to end once KMD is in a position to announce the capital raise. We note that we expect KMD will separately request a further two day trading halt be applied to allow time for completion of the institutional components of any such capital raising.”

The capital raise comes a day after KMD rebuffed after a takeover proposal involving its Rip Curl business from US surfwear company Stokehouse Unlimited.

KMD has 283 stores across New Zealand and Australia and another 325 around the world.