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Boohoo to raise £200m to fund further acquisitions

Boohoo Group intends to raise £200m through equity placing to bankroll 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”, plans to conduct the share placing through an accelerated bookbuild.

The process is a form of offering in the equity capital markets which involves offering shares normally over one or two days, with little to no marketing. Zeus Captial and Jefferies are acting as joint global coordinators. 

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, however now confirms that trading into May “remains robust”. 

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