Boohoo Group PLC (LON:BOO) is proposing a share placing to raise £200mln to snap up future acquisitions.
The online fast-fashion retailer said “numerous opportunities” are “likely to emerge in the global fashion industry over the coming months”.
READ: Boohoo gets target price upgrade by Credit Suisse as it notes strong customer interaction despite coronavirus crisis
The coronavirus crisis has pushed several brands into administration, such as Cath Kidston, Oasis and Warehouse.
As of 29 February, Boohoo had £240mln net cash and has remained cash generative since.
Trading has improved during April, delivering year-on-year growth, after an initial drop in sales as lockdowns were implemented in March.
The AIM-listed firm said May performance remains “robust”.
The placing is not being underwritten and will be conducted via bookbuild.
"The risk of summer disruption remains, but we believe that should not be a distraction to medium-term outperformance," analysts at Peel Hunt said.
"We expect boohoo will come out of this in a stronger market position, with a bigger brand platform for growth, and plenty of upside ahead."
Shares rose 4% to 363.6p on Friday at the opening bell.
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