Fast fashion retailer Asos’ shares shot up today after raising £247m to strengthen its financial position amid the coronavirus crisis.
The online retailer announced the fundraise last night as it warned of a “prolonged downturn” due to the outbreak.
It said it has placed 15.8m new shares at a price of 1,560p per share.
That led shares to rise by a third yesterday. But Asos investors pushed it further up again today to rise over 25 per cent. That puts its share price close to 2,000p.
Asos warns of coronavirus hit
Asos has continued to trade throughout the outbreak. But yesterday it warned that coronavirus has badly hurt demand.
Group sales were down around 20 per cent to 25 per cent in the last three weeks for Asos. That happened as countries implemented strict lockdown measures.
The company is also in talks to secure a £60m to £80m 12-month extension to its revolving credit facility.
Asos chief executive Nick Beighton said last night: “Along with other businesses, we have been significantly impacted by the Covid-19 outbreak.
“Our first priority was to quickly put in place the necessary measures to ensure the health and wellbeing of our people.
“I have been extremely impressed with the pace of change and the flexibility our teams have shown in adopting these new ways of working. I’d like to thank them all for the way they have responded.
“Since then, we have been focused on keeping our business delivering for customers whilst implementing a series of actions to mitigate the sales impact we have been experiencing,” the Asos boss added.
“At the same time we have been working to strengthen our financial position, including reaching agreement with our lenders to provide us with additional short-term financial flexibility.”