SYDNEY Nov 26 (Reuters) – SurfStitch, the online clothing
store formerly owned by Australian firm Billabong International
Ltd, plans to raise up to A$93 million (79.34 million)
in a partial share market listing, a source with direct
knowledge of the sale said.

The sale will likely value the company higher than it was
worth when struggling surfwear firm Billabong said it netted
A$35 million from the sale of its 51 percent stake in August,
highlighting the urgency of Billabong’s exit.

The source, who requested anonymity because the details of
the listing have not been finalised, did not disclose how much
of the company SurfStitch planned to sell.

Australia is headed for its biggest year of IPOs as company
owners capitalise on a relatively buoyant equity market fuelled
by record low interest rates. Internet-related firms are
increasingly joining the ranks of firms listing as they bypass
overseas technology markets like the NASDAQ in the hope of
attracting support locally.

Investment bank JP Morgan AG, which is running
the SurfStitch listing, plans to lodge an initial public
offering prospectus with Australian authorities on Thursday, the
source added.

Fund managers Perpetual Ltd, Paradice Investment
Management, Ausbil Investment Management Ltd and Regal Funds
Management Pty Ltd, which have a combined 65 percent holding,
plan to keep stakes in the company after listing, as do the
founding directors, the source said.

SurfStitch is forecasting annual revenue of nearly A$200
million after buying U.K. rival Surfdome Shop Ltd. Similar
online clothes retailers like U.K.-listed ASOS Plc and
Boohoo.Com Plc trade around two times annual revenue
but SurfStitch will likely be priced at a lower price-revenue
multiple, the source said.

(1 US dollar = 1.1722 Australian dollar)

(Editing by Stephen Coates)