Ocado to raise £1bn to take advantage of growth in online grocey delivery
Online grocer Ocado is aiming to raise £657 million in an equity share placing with institutional and retail investors as it looks to take advantage of the acceleration in the shift to online grocery shopping due to the Covid-19 crisis.
It will also borrow £350 million through a convertible bond issue.
The funds raised will be used to increase fulfilment capacity with its existing Ocado Solution partners and help it to acquire new grocery clients to use the platform.
Tim Steiner, chief executive of Ocado, said: “As we emerge from this crisis Ocado has the opportunity to help our Ocado Solutions partners in the UK and around the world grow faster, to welcome more partners in new markets, to innovate more and more quickly, and to further strengthen our leadership position.
“This capital raise gives Ocado Group the opportunity to accelerate our role in creating sustainable change in the industry, allowing us the flexibility to move at increased pace and capitalise on the full opportunity set over the medium term.”
Ocado’s current Ocado Solutions partners include the likes of Morrisons, Kroger, Aeon and Coles. The company will also launch a grocery delivery service with Marks & Spencer later this year.
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