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11 June 2020 By Aimee Donnellan Follow @aimeedonnellan

The 15 bln pound online retailer raised over 1 bln pounds to fulfil global demand for its warehouses. CEO Tim Steiner’s plan takes advantage of a near-doubling in its share price since the pandemic. But capital-intensive investments mean investors face a longer wait for earnings.

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Ocado on June 11 said it had raised 1 billion pounds through an issue of shares and convertible bonds, as the online supermarket and technology group seeks to capitalise on the rapid growth of the online grocery market triggered by the coronavirus crisis.

Ocado said it had raised 657 million pounds by placing 33.5 million shares at 19.60 pounds each, a 5.7% discount to the closing share price on June 10. It also sold senior unsecured convertible bonds worth 350 million pounds. The bonds, which offer investors a 0.75% coupon, are convertible to ordinary shares at an initial conversion price of 26.46 pounds, a 35% premium over the share price for Ocado’s equity placing.

Ocado’s shares were down 5.8% at 19.59 pounds at 0814 GMT on June 11.

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