Boohoo brings in 50 million pounds via share listing

London - Boohoo has successfully fundraised 50 million pounds by listing close to 23 million shares. The money will be used to invest in the construction of a new warehouse as the brand continues to grow.

The online fashion retailer announced on Wednesday morning it aimed to list 22,727,273 shares on AIM in order to raise enough capital to fund the construction of a new, automated supersize logistical hub to fulfill its need for more warehouse capacity. The new distribution center, which is set to span 600,00 square feet, is set to provide Boohoo with over 2 million pounds of net sales capacity. The land acquisition for the site, together with the construction is set to cost the online retailer 150 million pounds over the next three years.

The equity placing is set to be formally completed once the shares are admitted to the market on June 12. The announcement comes as Boohoo Group reported a surge in sales for its first quarter of 2017. Like-for-like revenue for Boohoo and PrettyLittleThing jumped 78 percent, while gross margin was 54.2 percent compared to 56 percent last year.