Merino & Co. Limited (ASX: MNC) – Building Momentum in Merino Wool Innovation
- Noel Ong
- Jul 4
- 6 min read
Announcement
From Prospectus to Progress: 🆕 IPO Review
ASX Snapshot – Merino & Co. Limited (ASX: MNC)
ASX Code: MNC
Listing Date: 30 October 2024
IPO Offer Price: $0.20
Current Share Price (as at June 2025): $0.145
Market Capitalisation: AUD $7.70M
Industry Group: Consumer Durables & Apparel
From Listing to Market Execution - The Merino Wool Story
Merino & Co. Limited (ASX: MNC) entered the ASX in late October 2024, raising $6.35 million in its IPO. The strategy was clear: expand manufacturing capabilities, modernise its supply chain, and position the brand for export-led growth in premium merino wool (Figure 1) products.
Figure 1: Australian merino wool (source: MNC)
The six months since listing have been anything but idle. Merino & Co. has focused on operational readiness, market expansion, and bold initiatives to reposition the business for long-term growth.
Notably, a new long-term lease was secured in Wangara, WA, doubling facility size and positioning the company near major infrastructure for optimal logistics. This expansion, paired with the commissioning of over 20 state-of-the-art automated manufacturing machines, effectively tripled production capacity.
What Has Merino & Co Done Since Listing?
Operational Expansion:
Relocation to a new manufacturing and warehouse facility in Wangara, WA.
Strategic investment in four automated weaving looms, four sock knitting machines, and 15 additional knitting machines.
Increased capacity to manufacture high-demand products like socks, scarves, and throws, with near-zero human input, driving unit costs down.
Merino and Co. Managing Director Fiona Yue commented:
“I am pleased to provide the very first update to shareholders since our highly successful IPO in late October 2024, raising $6.35 million.
“As part of our strategy to offer a more fulsome product range of fine Merino wool products, we have now ordered our first batch of highly automated machines to manufacture socks, scarves, shawls and throws.
“When this added manufacturing capability is in place, Merino & Co. will be able to develop its own branded range of high-quality merino socks to meet growing market demand.”
Product Development & Market Entry:
Cleared legacy inventory to align with a rebranded, premium market approach.
Launched a new product line featuring merino-possum blends and eco-dyed garments.
Enhanced digital presence: launched a new website with multichannel checkout and relaunched presence on Amazon (AU & US), Rakuten (Japan), and Tmall (China).
Strategic Innovation:
Integrated cryptocurrency (Bitcoin and Ethereum) as accepted payment methods and initiated a crypto treasury reserve.
Started groundwork for token-based loyalty programs and a structured crypto treasury policy.
Retail & Wholesale Moves:
Prepared major inventory orders to meet demand in North America, Europe, Japan, and China for the northern winter cycle.
Growing brand awareness through planned collaborations with lifestyle brands and influencers.
Use of IPO Funds – Summary (Actual vs Budget)
As of 31 March 2025, Merino & Co. has deployed approximately $2.73 million of its IPO proceeds. The majority of this amount has been allocated towards preparing stock for wholesale orders, with $899,000 spent — well within the budgeted range of $1.54–$1.6 million.
Spending on expanding production capacity reached $641,000, which is below the forecasted range of $1.18–$1.42 million, indicating a phased rollout of capital expenditure.
Marketing and branding remain significantly under budget, with only $100,000 spent against a potential allocation of up to $875,000, suggesting that brand promotion efforts are being paced strategically.
Corporate and administrative costs have totalled $319,000, which is roughly halfway through the $534,000 budget. Meanwhile, investment in research and development has been minimal, with just $20,000 spent from the allocated $350,000.
Overall, the Company has maintained a conservative cash burn approach, prioritising stock readiness and infrastructure investment while preserving liquidity for future initiatives.
The deliberate under-expenditure in branding and R&D signals a cautious but calculated ramp-up, prioritising manufacturing and inventory readiness ahead of anticipated demand surges.
🔹Share Price Performance Since Listing
Since listing on the ASX at $0.20 per share on 30 October 2024, Merino & Co. (ASX: MNC) has experienced a gradual easing in its share price, reflecting early-stage consolidation typical of new listings. The stock reached lows around early April, dipping below $0.14, before stabilising and trending within a narrow range through May and June. As of mid-June 2025, MNC is trading at $0.155, a 22.5% decline from its IPO price (Figure 2)
Despite the softer price action, the Company has remained focused on executing its growth strategy—tripling manufacturing capacity, entering global e-commerce channels, and expanding its market presence. The share price movement, in this context, appears more reflective of investor patience as the fundamentals of the business catch up with its strategic vision.
Figure 2: MNC’s Share price as of 19 June 2025 (source: ASX)
Samso Concluding Comments
For investors eyeing the consumer durables space, Merino & Co. represents a fusion of heritage material and modern delivery. In just six months since listing, the Company has executed on major strategic fronts—tripling its production footprint, activating global e-commerce channels, and preparing inventory for winter-led demand spikes.
Short-term margin contraction and share price softness reflect the necessary investment phase of a high-potential business. With strong liquidity, lean manufacturing, and a global reach expanding into Asia, the US, and Europe, MNC is worth keeping on the radar.
In a world increasingly conscious of sustainability, heritage fibres like merino—and companies willing to evolve with them—are poised to redefine luxury retail with an eco-conscious lens.
The Samso Way – Seek the Research
Merino & Co. is more than a wool brand—it’s evolving with intent. By combining heritage textiles with modern platforms like e-commerce and crypto, and aligning operations with global demand cycles, MNC is quietly positioning itself for long-term relevance. At Samso, we believe it's this kind of execution—not just ambition—that investors should be watching.
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