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Boohoo raises £200m to bankroll acquisitions

Boohoo Group has completed a £197.7m equity fundraising to finance further acquisitions in the coming months. 

The online fashion group, which has said it ”continues to review a number of possible merger and acquisition opportunities”, conducted the share placing through an accelerated bookbuild.

The process, which involves offering shares normally over one or two days, was launched yesterday, and Boohoo raised the funds within 24 hours. 

It involved the private placing of 58,140,591 shares, representing 5% of the company’s issued share capital at a price of 340p per share. Zeus Capital and Jefferies acted as joint global co-ordinators.

Boohoo said it plans to use the net proceeds to “take advantage of numerous opportunities that are likely to emerge in the global fashion industry over the coming months”. 

As of 29 February, the group had audited net cash of £240.7m and has remained cash generative since the year-end. The group’s most recent acquisition was the online businesses of womenswear brands Karen Millen and Coast in August of last year

Revenue and profits soared at Boohoo Group in the year to 29 February 2020. Group revenue was up 44% year on year to £1.23bn. Profits before tax rose by 54% to £92.2m.

The group noted that, since mid-March, trading has been mixed as a result of the Covid-19 pandemic, but said trading into May “remains robust”. 

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