Gibbons said it had received applications for 83,039,838 open offer shares, representing a take-up rate of 220.3%.
The group said the move would ensure it has enough money to repay debt, support its rationalisation programme, integrate previous acquisitions and provide the extra working capital needed to allow it to trade efficiently.
Gibbons said in January that it was considering options to shore up its working capital position before the end of its financial year this month.
In November, the group scrapped its interim dividend as profits tumbled to £400,000 from £3.7mln.
The firm had already cautioned that weakness in Asia and difficult markets for some of its more high-value stock would affect full-year numbers.
Shares in the group rose 1.12p, or 7%, to 16.88p in mid-morning London trading.