Shares in THG fell around 6% today after the Manchester-based company raised £95m in a fresh fundraise.
The London-listed ecommerce firm completed the oversubscribed raise, which were offered at a 5.2% discount to yesterday’s closing share price, after existing long-term and institutional shareholders contributed approximately £50m to the fundraise, including CEO Matthew Moulding who invested £10m. A retail investor offer raised a further £5m.
The shares were offered at a price of 49p but the stock slipped slightly lower after markets opened this morning.
THG announced the move on Thursday in order to fund the demerger of its Ingenuity division, which provides digital services to leading consumer brands.
The split will leave the company to focus on its Beauty and Nutrition divisions, including the brands Lookfantastic and Myprotein.
THG said it “believes that there is a significant opportunity to create value for shareholders by demerging Ingenuity into a separate private company which can focus on scaling brands digitally, navigating the complexities of acquiring new audiences, driving traffic, facilitating frictionless ecommerce and distributing products to consumers.”
The company said the demerger would help reduce its debt levels by transferring a significant share of its lease liabilities to Ingenuity, which “should be a positive for the major rating agencies given their focus on this metric.”
THG’s stock has fallen by more than a third since the start of the year.
