10th Jun 2020 17:26
(Alliance News) - Ocado Group PLC on Wednesday said it plans to raise GBP1.00 billion through placing, retail offer and bond issue to ensure its "financial flexibility".
The online grocer plans to raise GBP657 million through a bookbuild and a retail offer.
The company did not say how may shares it would place, nor at what price, adding this would be determined following the bookbuild.
Ocado's stock closed 0.3% higher at 2,079.00 pence each in London on Wednesday, giving it a market capitalisation of GBP14.85 billion.
"Concurrently with the placing and retail offer, the company is also launching an offering of GBP350 million of guaranteed senior unsecured convertible bonds due 2027," Ocado said.
The company said the fundraising offers it "financial flexibility to capitalise on opportunities arising from the significant acceleration in online adoption and grow faster over the medium term".
"Online grocery continues to experience significant growth globally, driven by channel shift, as customers demand ever greater convenience for their household shopping. Industry data evidences that Covid-19 has significantly accelerated this ongoing change in shopping habits, as "lock-down" measures have led consumers to shop online," Ocado said.
"Surveys indicate that many customers who have purchased groceries online in recent months, will continue to do so, resulting in a both a new baseline for online penetration, and expectations for a sustainable step up in growth from this new baseline."
By Eric Cunha; [email protected]
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