14th May 2020 17:33
(Alliance News) - Online fashion retailer Boohoo Group PLC on Thursday said it intends to raise GBP200 million through equity placing to take "advantage of numerous opportunities that are likely to emerge in the global fashion industry over the coming months".
Shares in the company closed down 2.1% at 351.30 pence each in London on Thursday.
Boohoo, which continues to review a number of possible mergers and acquisition opportunities, plans to conduct the share placing through an accelerated bookbuild.
Zeus Capital and Jefferies International Ltd are acting as joint global coordinators and joint bookrunners in connection with the placing.
Following the share placing, the company will have an even stronger balance sheet to help accelerate its vision to lead the fashion e-commerce market globally, Boohoo said.
As at February 29, the Manchester-based company had net cash of GBP240.7 million.
Boohoo noted that trading has been mixed since mid-March due to the Covid-19 pandemic, but performance then improved during April and trading into May remains robust.
The company, however, remain cautious regarding the outlook, as a result of the uncertainty caused by the Covid-19 pandemic together with the impact of lifting lock-down restrictions and the potential influence on competitive behaviour for the remainder of 2020.
"Given the uncertainty generated by the continually evolving Covid-19 pandemic, it is not appropriate to provide guidance for the financial year ending February 28, 2021, at this stage," Boohoo said.
By Tapan Panchal; [email protected]
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