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Asos PLC on Friday said that it has raised £75 million through a share placing, in order to support its Driving Change agenda. The online fashion retailer placed a total of 17.9 million shares at 418.1 pence each. The funds raised will go towards its new agenda, which is designed to return Asos to sustainable profit and cash generation by the second half of this year. Asos shares were trading 1.8% higher at 425.60p each in London on Friday morning. Back in October, Asos announced the turnaround plan. It committed to improving inventory management, reducing its costs and reinforcing its leadership team. The plan was one of Jose Calamonte’s first acts as chief executive. However, some City analysts felt a fundraise would be necessary to get the ball rolling. Analysts at Shore Capital said earlier in May: ‘Given the ongoing restructuring and cost savings initiatives, it is becoming increasingly evident that Asos will need to seek further capital infusion to support its long-term viability, in our view.’ Asos on Thursday also announced a new long-term £275 million financing facility, alongside the fundraising plan. Asos has entered into a £200 million senior term loan and a £75 million super senior revolving facility with specialist lender Bantry Bay Capital Ltd through to April 2026, which will replace the existing £350 million revolving credit facility which was due to expire in November 2024. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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