Ocado Group PLC on Tuesday said it has raised £578 via a placing, subscription and retail offer.

The online grocer and warehouse technology provider said it has successfully completed its fundraise, which it had announced after the market close on Monday.

Ocado had said it planned to raise funds to expedite growth plans, amid what it called surging online grocery demand in the wake of the Covid-19 pandemic.

The online company placed 72.3 million shares at 795 pence each, raising £575 million. The placing price was a 9.4% discount to Monday’s market close of 877.6p.

Shares in Ocado were down 4.2% to 841.20p each in London on Tuesday morning.

The placing was done in conjunction with an offer to retail investors involving 246,405 shares and 150,944 subscription shares taken by members of the senior management team, Ocado said.

Notably, Chief Executive Tim Steiner bought 125,786 shares at the placing price, worth just shy of £1 million.

Together, the placing, retail offer and subscription, will raise gross proceeds of around £578 million.

The new shares to be issued under the offer represent approximately 9.7% of the existing issued share capital of Ocado prior to the fundraise.

It is not the first time Ocado has gone cap in hand to investors since the Covid crisis kicked off. In June 2020, it said it raised £1.01 billion from a placing, retail offer and bond offer.

Also on Monday, Ocado said it has agreed a £300 million revolving credit facility, provided by a syndicate of banks.

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