AO to raise £40 million through share placing
Online electrical appliance retailer AO.com is planning to raise around £40 million in new capital as it looks to strengthen its balance sheet and increase liquidity.
The move follows earlier news that a third-party credit insurer of the business had rebased its cover in May, “reflecting post-Covid sales levels”.
In a statement today, AO said it will be conducting a placing of new ordinary shares of 0.25 each at a price of 43 pence per ordinary share. This will be carried out by way of an accelerated bookbuild.
John Roberts, chief executive of AO, said: “In addition to being a sensible piece of financial house-keeping given the short-term macroeconomic uncertainty, this capital raise will give us the necessary foundation from which to go after the significant long-term growth opportunities that we see for AO in the UK.
“It will also allow us to deliver on the new financial targets that we are setting today. Our core major domestic appliance category is proving to be resilient over time, given the natural replacement cycle of white goods and their non-discretionary nature. In addition, expanding into newer categories remains a key priority and a major opportunity for us.”
In a current trading update, AO said its first quarter performance is materially in line with expectations as set out in its trading statement of 29 April.
Roberts added: “I remain hugely optimistic about the future of our business underpinned by the fantastic people we have in it and the way they amaze our customers every day.”
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