KMD Brands suspended trading in its securities on both the Australian Securities Exchange (ASX) and the New Zealand Stock Exchange (NZX) on March 25, 2026, as the Christchurch-based outdoor group works to complete a capital raise ahead of the release of its first-half financial results.
The company confirmed it is pursuing the raise through two mechanisms: a private placement with institutional investors and an Accelerated Renounceable Entitlement Offer (AREO), structured so existing shareholders can participate in proportion to their holdings, with rights tradeable on market.
The trading halt was requested to prevent material information from leaking ahead of the formal announcement, as the final terms of the raise are still being negotiated. KMD flagged in its exchange filings that a further two-day halt may follow to allow time for the institutional component to close.
Half-year results delayed
KMD was scheduled to publish its results for the six months to January 31, 2026, on March 25. The company told the market it was not in a position to do so, with figures now expected no later than Friday, March 27.
Earlier guidance pointed to first-half underlying EBITDA of NZ$8 million (€4.07 million) to NZ$11 million (€5.59 million) — a meaningful improvement on the NZ$3.9 million (€1.98 million) recorded in the equivalent period a year earlier, though below the NZ$15.1 million (€7.67 million) delivered in H1 FY24.
Stokehouse proposal rejected
The capital raise announcement followed KMD’s formal rejection, on March 24, of a transaction concept put forward by Stokehouse Unlimited, a California-based surfwear company led by Paul Naude, a former chief executive of Billabong International. Stokehouse — which operates the Vissla, Amuse Society and D’Blanc brands — had proposed a two-step transaction: KMD would first demerge Rip Curl as a separately listed entity, which would then merge with Stokehouse, leaving Stokehouse shareholders with a 22 percent stake in the combined business.
KMD chairman David Kirk concluded the proposal creates no value for shareholders and would be challenging to execute, adding that combining surf brands that compete directly with each other has no proven strategic logic.
Debt pressure and Goldman mandate
The capital raise follows the March 16 disclosure that KMD had engaged Goldman Sachs to assist with treasury and capital management as part of a broader review of its funding options. The mandate was initially described as advisory, with KMD stating at the time that no refinancing terms had been agreed.
The group’s share price on the ASX had fallen by about 47 percent over the previous 12 months. Total group sales for the five months through December 2025 rose 7.9 percent year-on-year, led by Kathmandu with a 12.9 percent gain, while Rip Curl added 5.6 percent and Oboz 4.5 percent.
