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(Alliance News) - DFS Furniture PLC on Thursday said it has raised GBP64 million through the placing and subscription of 42.6 million shares at 150 pence each.
The placing price represents a 16% premium to the Wednesday closing price of 129p. Shares in the furniture retailer were trading 17% higher at 150.26p each on Thursday morning in London, giving a market capitalisation of GBP319.6 million.
DFS said that substantial shareholder Franklin Templeton Investment Management Ltd took 3.9 million placing shares. Members of the executive team - including Chair Ian Durant, Chief Executive Tim Stacey and Chief Financial Officer Mike Schmidt - subscribed for a total of 108,664 placing shares.
The company said the new cash will be used to strengthen the company's balance sheet, working capital and liquidity position in the event the lockdown period continues through to December followed by a historically weak sofa market.
Following admission, DFS's issued share capital will comprise 255.6 million shares.
By Ife Taiwo; ifetaiwo@alliancenews.com
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