Ocado, the online supermarket, has now raised £575 million from investors to help it sustain its plans for expansion amidst a slowing economy here in the UK.
The enterprise was among the largest beneficiaries of the surge in online shopping when Britain went into lockdown during the COVID-19 pandemic. In a recent statement, it confirmed that to continue its current growth rate, it had sold 72 million shares to both institutional and existing investors at a price of 795p each.
Additionally, the grocer raised a further £3 million placing by selling company shares to management and in yet another separate offering that was tailored specifically for retail investors.
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Ocado’s recent round of fundraising comes as list of factors such as technology stocks sell-off, a consumer slowdown and the reversion to shopping habits prior to the pandemic combine and slow financial progress at the group.
Ocado Retail is an online grocery venture that is jointly owned by respected retailer Marks and Spencer. It warned back in May that sales growth for 2022 was expected to be lower than the last forecast of 10%.
In its statement, the grocer commented that the proceeds from the recent share sale would provide it with sufficient liquidity to fund the necessary requirements for both its existing and anticipated customer commitments stretching into the midterm.