Online multi-brand marketplace Asos has announced that it has raised approximately 75 million pounds from its shareholders, as it looks to return the business to sustainable profitability and cash generation.
The raise comes in support of the company’s ‘Driving Change’ agenda, for which it is aiming to achieve a flexible balance sheet.
Asos also announced that it had established a new long-term 275 million pound financing facility through to April 2026 with Bantry Bay Capital Limited, in a bid to further boost its efforts of long-term value creation.
The new facility replaces Asos’ existing 350 million pound revolving credit facility which was due to expire in November 2024.
The company said that its total cash financing cost to be incurred in H2 FY23 is now expected to be 55 million pounds.
Meanwhile, its equity raise has been underwritten by three shareholders, including the investment arm of Danish fashion group Bestseller, Aktieselskabet Af, one of Asos’ largest shareholders.
Separate retail offer launches of up to five million pounds
Next to this, the company also launched a separate retail offer of up to five million pounds of new ordinary shares, which will be made using the PrimaryBid platform.
The decision to implement such an offer comes as Asos aimed to provide its retail investor base designed to give them an opportunity to participate in its equity fundraising alongside the placing.
The company said it would use the proceeds of the raise to support changes to its operating model, as part of the refinancing of its existing debt.
Asos’ Driving Change agenda, outlined in its interim results on May 10, is set around four pillars, including a renewed commercial model with improved stock management, stronger order economics and a lighter cost profile and a flexible balance sheet.
As part of the strategy, Asos is also planning to reinforce leadership and refresh its culture, a move that has already been evident in a string of appointments over the last year, including a new CEO.