By Ian Walker and Anthony O. Goriainoff
Ocado Group PLC said Monday evening that it had raised 578 million pounds ($708.1 million) through the equity placement, subscription and retail offering announced earlier in the day, and that it would use the money to fund existing and expected customer commitments.
The British online grocer and retail technology specialist has now issued a total of 72.7 million new ordinary shares through the fundraising at 795 pence each. The issue price is a 9.4% discount to the company’s closing price of 877.60 pence on Monday.
Certain directors and members of the management team, including Chief Executive Tim Steiner and Group Chief Financial Officer Stephen Daintith, subscribed for 150,944 of the new ordinary shares.
The company said late Monday that it was raising the funds and the placement would be made through an expedited bookbuilding process.
The company also said it had reached an agreement on a new £300m revolving credit facility with a syndicate of major international banks.
Ocado also supported the guidance it gave earlier in the year. On Feb. 8, the company said it expects a return to strong mid-teen revenue growth in 2022.
“The net proceeds from the capital increase are expected to provide the Ocado Group with sufficient liquidity to fund the needs of its existing and expected customer commitments over the medium term, with no additional group funding expected as the business becomes positive,” the company said. .