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(Alliance News) - Online grocer Ocado Group PLC said Thursday it raised GBP1.01 billion from its placing, retail offer and bond offer.
Ocado placed 33.2 million shares at a price of 1,960 pence each, with retail investors subscribing via the PrimaryBid platform for another 362,000 shares at the same price. Together, the fundraise comprised 33.5 million shares, generating gross proceeds of GBP657 million.
The placing price represents a 5.7% discount to the company's closing price of 2,079p on Wednesday in London, giving it a market capitalisation of GBP14.85 billion.
On top of the placing, Ocado has priced a GBP350 million bond offer of guaranteed senior unsecured convertible bonds due 2027 at 0.75% per annum. The online grocer said the bonds will be converted into shares at GBP26.46 each, representing a 35% premium to the placing price.
In a statement after the market close on Wednesday, Ocado 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 added.
The company continued: "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 Paul McGowan; paulmcgowan@alliancenews.com
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