Boohoo raises nearly £200 million through share placing
Online fashion retailer Boohoo has raised £197.7 million through a share placing.
In a statement, the company said it will use the proceeds to take advantage of any suitable merger and acquisition opportunities that may arise in the coming months.
The placing will also support Boohoo’s balance sheet and help to “accelerate its vision to lead the fashion ecommerce market globally”.
The news follows the company’s acquisition of the Karen Millen and Coast fashion brands last year.
When announcing its preliminary results on 22 April, Boohoo said trading had been mixed since mid-March due to the outbreak of covid-19. It has now reported an improvement since mid-April with trading in May remaining “robust”.
Looking ahead, the company said: “ The group does, however, remain cautious regarding the outlook, as a result of the uncertainty caused by the covid-19 pandemic together with the impact of lifting lock-down restrictions and the potential influence on competitive behaviour for the remainder of the year.”
It added: “Given the uncertainty generated by the continually evolving covid-19 pandemic, it is not appropriate to provide guidance for the financial year ending 28 February 2021 at this stage.”
Zeus Capital and Jefferies acted as joint global coordinators and joint bookrunners in connection with the placing.
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