THG PLC on Friday said it has raised just over £95 million after completing the placing announced on Thursday, which will be used to fund the Frasers Group-backed plan to demerge its Ingenuity division.
The Manchester-based e-commerce retailer said it has raised £95.4 million in gross proceeds from an ‘oversubscribed and upsized fundraise’ in which it placed 194.7m new shares at 49p each, a 5.2% discount to its closing price on Thursday.
The funds will be put towards THG’s plans to ‘demerge’ from its Ingenuity division, which it first announced in September. Ingenuity is the firm’s technology platform, and will trade as a standalone independent private entity with no recourse to THG after the demerger.
Frasers on Friday also made a further ‘strategic investment’ of £10 million into THG, underscoring the multi-year strategic partnership agreed in June between the two companies. This investment was in addition to the net proceeds of around £75 million that THG raised from investors on Thursday to provide IngenuityCo with sufficient medium-term funding.
THG’s board has approved a valuation of Ingenuity at £100 million.
The remaining group will consist of the company’s ‘highly cash generative’ Beauty and Nutrition divisions, THG added, in a simplification of its business model. Following the demerger, what remains of THG will be included in the FTSE UK Index reclassification in March.
Shares in THG were down 5.2% at 49.00 pence each in London on Friday morning.
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