Ocado Group plc, the online grocery platform, is set to raise £575m of new ordinary shares of 2 pence per share from its investors in a bid to support its technology rollout and further its positions in its existing and new products and markets.
The proceeds are expected to give the company enough liquidity to fund the requirements of its existing and expected customer commitments into the mid-term, reporting driving growth and returns in the future.
The announcement comes as Ocado’s shares fell 9.41% to 795 pence, according to the group’s closing shares price on Monday (20 June).
Alongside the capital raise, Ocado also announced a successful agreement on a new £300m revolving credit facility, provided by a syndicate of international banks.
Ocado said the capital raise and new bank financing will allow the company to capitalise on its medium term goals, including efforts to support current Ocado Solutions partners following the increasing global demand for online groceries, which Ocado said requires faster growth in fulfilment capacity.
The funding will also continue Ocado’s investment in innovation and at a “faster pace” to drive further efficiency gains that can be monetised through the OSP, or to leverage its technology expertise in other adjacencies.
The group added the currently announced partnerships for its Technology Solutions business includes a pipeline of 58 CFCs, with more than 300 modules, and it will reportedly generate over £20bn in partner sales in the medium term.