Boohoo raises £50m for new warehouse with share placing

Helen Cahill
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The online retailer targets fashion-forward millennials (Source: Getty)

Fast-growing online retailer Boohoo confirmed this morning that it has raised £50m from a share placing.

The e-commerce business has also announced that its first-quarter sales surged to £120.1m in the three months ending 31 May, soaring 106 per cent on last year's sales.

Boohoo's share placing will be used to fund a new warehouse with around 600,000 square feet of space. The firm said it needed the space because "the growth rates of the group's brands are accelerating the need for more warehouse capacity".

Read more: No tears for Boohoo as web strategy wins sales

The warehouse will be automated and Boohoo is hoping it will add £2bn to its sales capacity.

"And the way things are going at Boohoo it won't take too long to get there," said independent retail analyst Nick Bubb.

"It says something about the extraordinary outlook for the business that all the shares have been snapped up at 220p, a minimal 0.3 per cent discount to the closing price last night."

The new warehouse is expected to cost around £150m over the next three years, and Boohoo has made an application for another share placing to take place on Monday to help raise money for the site.

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