19th Feb 2026 12:00
(Alliance News) - Boohoo Group PLC said on Thursday it successfully oversaw a "significantly oversubscribed" fundraise, which will start trading on Monday.
The Manchester-based online fashion retailer, which trades as Debenhams, raised about GBP40 million with its accelerated bookbuild process, above the company's target of around GBP35 million. The fundraising comprised a placing of 200 million new shares and subscriptions for 22.2 million shares, at an issue price of 18 pence each, for net proceeds of approximately GBP38.7 million.
The issue price represented a 5% discount to Tuesday's closing price of 19 pence.
boohoo shares were 5.6% higher at 19.00 pence on Thursday in London.
Following the fundraise, Non-Executive Director Iain McDonald stepped down with immediate effect to "facilitate participation in the fundraise by certain funds" he manages. McDonald himself invested GBP3 million in the fundraise, subscribing for 16.7 million shares.
boohoo said the board is satisfied with its size following the appointment of Tom Handley last year, and the transition in 2024 of Tim Morris to the role of independent chair.
In addition to McDonald, Boohoo's Chief Executive Officer Dan Finley, and Co-Founder & Executive Chair Mahmud Kamani along with his relatives and trusts, participated in the fundraise with investments of GBP150,000 and GBP8.0 million each, respectively.
Finley 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.
"The fundraise will deliver an improved capital structure for the group, providing us with greater financial flexibility to execute our turnaround strategy and deliver value for all shareholders."
By Martin Miraglia, Alliance News reporter
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