Australia’s most recognised sleep brand is about to become one of its newest ASX listings. Furniture company Koala has announced plans to list on the ASX on 31 March under the ticker KOA, targeting a $68 million raise. The move caps years of false starts, shelved plans, and genuine ambition from two founders who have always believed they were building something built to last.
The numbers give that ambition a price tag. With combined stakes valued at approximately $117 million at the IPO price, co-founders Dany Milham and Mitch Taylor are not cashing out. They are betting on what comes next.
What Happened: Koala Launches Its Long-Awaited IPO
Koala has priced 20 million shares at $3.40 each, implying a market capitalisation of $305 million. The company forecasts $330 million in revenue and $25 million in EBITDA in FY26.
The prospectus was lodged on 16 March 2026. The retail offer period opens on 23 March and closes on 24 March. Barrenjoey is acting as sole underwriter and joint lead manager, with Morgans as joint lead manager.
This is not Koala’s first attempt at a public listing. Nine months ago, Koala shelved plans for a circa $100 million IPO. Co-founders Milham and Taylor deferred that original schedule after mounting US-China trade tensions threatened their expansion plans in the US.
This time, Milham says the business is ready regardless of the noise.
“While there’s a lot going on in the world, and fluctuations, a business like ours isn’t impacted by AI,” Milham told Capital Brief. “We actually had non-deal roadshows weeks and weeks ago.”
Koala has expanded from mattresses into a full furniture range since its founding in 2015. [Koala]
Why It Matters: A Founder-Led Bet on Long-Term Growth
Co-founder and CEO Dany Milham is not selling any shares, maintaining a 20.7% stake. Fellow co-founder Mitch Taylor will realise $8.3 million while retaining a 16.3% interest.
Together, their retained stakes are valued at roughly $117 million at the IPO price. That is a meaningful signal. When founders hold rather than sell, they are telling the market they expect the stock to be worth more down the track.
Key insiders have agreed to strict escrow arrangements that lock up their shares until after the 2027 financial year results are announced. An exception allows for a partial sell-down in early 2027 if Koala’s share price consistently trades 20% above its IPO price.
Perennial Partners will sell down a portion but remain the largest shareholder with a 22.7% stake post-listing.
Dany Milham, Co-founder & CEO at Koala [LinkedIn]
Who Is Involved: From MilkRun to Mattresses
Koala was founded in 2015 by CEO Dany Milham and co-founder Mitch Taylor with a single mattress product. It has since expanded into sitting, bedroom, living, outdoor furniture and homewares.
Milham is one of Australia’s most recognisable startup founders. Beyond Koala, he launched MilkRun, the rapid grocery delivery company that was eventually acquired by Woolworths. That chapter is closed. His focus now is firmly on making Koala a generational business. He has described it as a “300-year business” in recent interviews.
Koala was founded with a simple ambition: to build a better kind of furniture company, grounded in thoughtful design, sustainability, and long-term value. To date, the company has donated more than $4.9 million to koala and wildlife conservation.
Where the Business Stands: Strong Revenue, Global Reach
Koala reported a 42% jump in revenue over the 2024-25 financial year to $276.3 million, with EBITDA of $13.5 million. Australia remained its most significant market, contributing $150 million in revenue. The United States saw the most dramatic uptick, surging 680% from the prior year to $47 million.
The company operates a direct-to-consumer model that cuts out the retailer and ships directly to the buyer’s door. That model keeps costs lean and customer data in-house.
The company operates across Australia, Japan, the United States and, most recently, the United Kingdom.
Koala’s key financial metrics at a glance
An infographic showcasing the key financial metrics of Koala ahead of its IPO [Koala]
When and How: The Timeline to Listing
- 16 March 2026: Prospectus lodged with ASIC
- 23-24 March 2026: Retail offer period opens and closes
- 31 March 2026: Target listing date on the ASX
The $20 million in primary proceeds will be used to repay debt, settle putted warrants, and pay transaction costs.
The remainder of the raise goes to existing shareholders selling down. It is a clean-up float as much as a growth story.
The Broader Context: IPO Market Back in Play
Koala’s listing comes as the ASX IPO pipeline shows genuine signs of life again. Last year, the Virgin Australia IPO was one of the most-watched listings on the exchange. Koala is shaping up as one of the more closely followed consumer-facing floats of 2026.
The Australian direct-to-consumer furniture market is also changing fast. With Bunnings expanding its home improvement and furniture footprint and competitors like Temple & Webster scaling up, the timing of Koala’s listing puts it in front of investors at a moment when furniture retail is seeing genuine competition for wallet share.
Koala’s edge is its brand and its data. Years of direct customer relationships, a proprietary design process, and an absence of middlemen give it margin control that traditional retailers struggle to match.
What Happens Next
The retail book closes on 24 March. Assuming no surprises, Koala lands on the ASX at the end of the month. The first trading day will tell investors how much of the growth story they are already pricing in.
Milham’s ambition is clear. He wants to run this business for the long term, not flip it. The escrow arrangements back that up. The question for investors is whether a $305 million valuation at roughly 0.9 times FY26 revenue leaves enough room on the upside.
Given the revenue trajectory and the founders’ decision to hold, the market will have its own answer soon enough.
Also Read: Two ASX Blue-Chips Are Bleeding Quietly as Oil Blows Past US$100 a Barrel
FAQs
Q: When is Koala listing on the ASX?
A: Koala is targeting 31 March 2026 for its ASX debut, trading under the ticker KOA. The retail offer period closes on 24 March 2026.
Q: How much is Koala raising in its IPO?
A: Koala is raising approximately $68 million at $3.40 per share, implying a market capitalisation of $305 million.
Q: How much are the Koala co-founders’ stakes worth at IPO?
A: At the IPO price of $3.40 per share, the combined retained stakes of co-founders Dany Milham (20.7%) and Mitch Taylor (16.3%) are valued at approximately $117 million.
Q: Is Dany Milham selling shares in the Koala IPO?
A: No. Milham is not selling any shares and is maintaining his full 20.7% stake in the company.
Q: What does Koala sell?
A: Koala sells mattresses, sofas, beds, outdoor furniture, and homewares direct to consumers in Australia, Japan, the US and the UK.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers should seek independent financial advice before making any investment decisions. Colitco LLP accepts no responsibility for any claim, loss or damage arising from the use of information provided in this article.
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