(Alliance News) - WH Smith PLC on Tuesday said it has raised GBP165.9 million through share placing and subscription by directors, as part of the company's effort to improve liquidity amid the virus outbreak.
The books and stationery retailer has shut the majority of its stores, except for those in hospitals and with post offices.
It placed 15.8 million new shares at 1,050 pence per share, representing about 14% of its share total prior to the offer. The company's senior management team, including Chair Henry Staunton and Chief Executive Carl Cowling, subscribed for 50,942 shares in total at the placing price.
The 1,050p per share issue price represents a 4.0% discount to the closing share price of 1,094p on Monday. Shares were trading 4.8% higher at 1,149.79p each on Tuesday morning in London. They remain down more than half since the start of 2020, however.
The share issue was by WH Smith on Monday alongside a new GBP120 million loan facility.
In March, WH Smith said revenue was down 25% year-on-year. April revenue is predicted to slump 90%, or GBP114 million, resulting in operating profit for April falling by GBP39 million.
For the remainder of the second half of its financial year ending August, WH Smith is guiding for revenue to be down between 80% and 85% year-on-year.
By Tapan Panchal; tapanpanchal@alliancenews.com
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Wh Smith (SMWH)