Online retailer upsizes equity raise amid strong investor demand as long-serving director steps down
Boohoo Group PLC (AIM:DEBS), which trades as Debenhams Group, has raised £40 million in an oversubscribed share placing, increasing the size of the fundraise after investor demand exceeded £35 million.
An accelerated bookbuild was completed at 18p per share, representing a 5% discount to the closing price of 19p on 17 February.
Proceeds are intended to improve the group’s capital structure and provide greater financial flexibility as it continues its multi-year turnaround.
Dan Finley, group chief executive, said: “We are pleased with the strong level of support from new and existing shareholders. The success of the fundraise demonstrates the strength of support for our multi-year turnaround strategy.”
In the same announcement, it was confirmed that Iain McDonald has stepped down with immediate effect as non-executive director and chair of the remuneration committee.
His departure follows participation in the fundraise and facilitates investment by certain funds managed by him.
McDonald, who has served on the board for nine years, said: “It has been a pleasure to be a non-executive director at Debenhams over the last nine years and I am delighted to support the company in the fundraising."