Boohoo Group PLC (AIM:BOO) has raised £39.3 million in a “significantly oversubscribed” placement to reduce debt after unveiling growing losses over the first half of the year.
A firm placing and retail offering were carried out on Wednesday, the company said in a statement, with shares sold 31p each, reflecting a 1p premium to Tuesday’s close.
Some 107,553,604 new shares were sold through the firm placing, raising £33.3 million, alongside a further 19,354,838 for an aggregate of £6.0 million in the retail offering.
“We are pleased with the level of support from our existing shareholders for the business in its next stage of growth,” chief executive Dan Finley commented.
“We trust that the retail offer provides smaller shareholders the opportunity to participate also.”
Boohoo had unveiled the fundraiser alongside results after the market’s close on Wednesday.
These showed revenue down 15.0% at £619.8 million over the first half and a wider adjusted pre-tax loss of £27.4 million, against £9.1 million a year earlier.
Net debt grew by 108.1% to £143.1 million in the meantime, as Finley pointed to ongoing challenges in the “volatile market”.
“I believe that the group remains fundamentally undervalued,” he said, adding the firm’s strategic review was ongoing.