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ASOS raises cash amid COVID-19 pandemic
Posted on Wednesday, 08 April 2020 09:32
ASOS, the UK-based online apparel retailer, has completed a placing of ordinary shares announced yesterday, raising total proceeds of GBP 247.00 million.
The company offered 15.81 million new ordinary shares, or an 18.8 per cent stake, at GBP 15.60 per stock, which is a slight premium to the group’s close on 7th April 2020.
Scrips in ASOS rose 39.5 per cent to GBP 21.75 at 08:39 today, giving the business a market capitalisation of GBP 1.50 billion.
JPMorgan, Numis Securities, Barclays Bank, BNP Paribas and HSBC Bank acted as joint global coordinators on the deal.
An application has been made to the London Stock Exchange for the admission of the placing shares to be admitted to trading on the Alternative Investment Market.
Settlement and admission is expected to take place on 14th April 2020.
The announcement follows a report by Bloomberg cited people familiar with the matter as saying ASOS is planning to seek more than GBP 200.00 million in a sale of shares.
In a statement, the company said its financial position remains robust, however, the impact of COVID-19 remains uncertain.
During the six months ended 29th February 2020, ASOS posted revenues of GBP 1.60 billion, up 22.1 per cent from GBP 1.31 billion in the corresponding period of 2019.
Gross profit rose 17.2 per cent to GBP 750.00 million in H1 2020 (H1 2019: GBP 639.90 million).
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 52 deals targeting clothing stores operators announced worldwide in 2020.
In the largest of these, Sycamore Partners Management agreed to buy a 55.0 per cent stake in Victorias Secret Stores Brand Management for USD 525.00 million.
Farfetch.com, Boohoo Group and Hennes & Mauritz, among others, have also been targeted in the year to date.
© Zephus Ltd