Debenhams Group has increased its proposed fundraising to £40m, as it reportedly seeks to strengthen its balance sheet and accelerate its turnaround strategy.
The figure exceeds the business’s previous target, after Debenhams confirmed plans for a £35m equity fundraise earlier this week.
The brand completed the placing and subscription at an issue price of 18p per share, marking a 5% discount from the 19p closing price on 17 February.
The fundraising was described as “significantly oversubscribed” at its set issue price, and involved the placing of 200m new ordinary shares as well as a subscription for 22.22m new ordinary shares.
Net proceeds stand at roughly £38.7m after expenses related to the fundraising process are deducted.
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The new shares are due to be officially accepted for trading on the AIM on 23 February.
The shares will be issued fully paid and are set to rank equally with existing ordinary shares.
The news comes as Debenhams Group non-executive director Ian McDonald, who participated in the fundraising round, his role on the remuneration committee.
McDonald said: “It has been a pleasure to be a non-executive director at Debenhams over the last nine years and I am delighted to support the company in the fundraising.
“This should be viewed as a measure of how much I believe the current market valuation of the business undervalues its future prospects.”
Debenhams Group CEO Dan Finley said: “We are pleased with the strong level of support from new and existing shareholders.
“The success of the fundraise demonstrates the strength of support for our multi-year turnaround strategy.
“The fundraise will deliver an improved capital structure for the group, providing us with greater financial flexibility to execute our turnaround strategy and deliver value for all shareholders.”
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