Boohoo prepares for post-Coronavirus acquisitions with £198million fundraise
Manchester online fashion retailer, Boohoo, has raised £197.7m as it set its sights on acquiring companies in the wake of the Covid-19 epidemic.
The fundraise was made through a share placing, where it stated:
“The Group intends to use the net proceeds of the Placing to take advantage of numerous opportunities that are likely to emerge in the global fashion industry over the coming months. The Group continues to review a number of possible M&A opportunities and will update shareholders as required.
"As at 29 February 2020, the Group had audited net cash of £240.7m. Since year end the Group has remained cash generative. Following the Placing, the Group will have an even stronger balance sheet to help accelerate its vision to lead the fashion e-commerce market globally.”
The firm has already acquired Karen Millen and Coast, moving the former high street brands online.
The £197.7m represents 58m shares, or 5% of its issued share capital, with shares priced at 340pence.
Zeus Capital and Jefferies acted as joint global coordinators and joint bookrunners.