ASOS Soars After Raising GBP247 Million To Shore Up Finances

(Alliance News) - ASOS PLC on Wednesday said it raised GBP247 million through a share placing as ...

Alliance News 8 April, 2020 | 11:17AM
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(Alliance News) - ASOS PLC on Wednesday said it raised GBP247 million through a share placing as the online fashion retailer seeks to bolster finances during the coronavirus crisis.

ASOS placed 15.8 million shares, about 19% of the share capital, at 1,560 pence each. The stock was 29% higher at 2,008.88p each in London on Wednesday morning.

JP Morgan Securities PLC and Numis Securities Ltd were joint global coordinators, while Barclays Bank PLC, BNP Paribas and HSBC Bank PLC were joint bookrunners.

ASOS announced plans for the placing on Tuesday and said the proceeds will go towards providing sufficient liquidity and flexibility for the company to manage through a period of continued disruption.

Also on Tuesday, the AIM-listed company reported its interim results, a day earlier than scheduled.

For the six months to the end of February, ASOS's pretax profit was GBP30.1 million, a sharp increase from GBP4.0 million the year before, as revenue grew by 21% to GBP1.60 billion from GBP1.31 billion. Retail sales climbed at the same rate, helped by a 20% climb in the UK alone.

ASOS added that the Covid-19 pandemic has significantly dented demand since containment measures were introduced, with group sales down by 20% to 25% in the most recent three weeks of trading.

By Eric Cunha; ericcunha@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
ASOS PLC 2,908.00 GBX -2.32

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