Ocado to add over $1 billion to firepower with placing, new bank facility

LONDON (Reuters) -British online supermarket and technology group Ocado will boost its liquidity by over $1 billion to fund its growth, it said on Monday.

The group plans to raise 575 million pounds ($704.2 million) through a placing of new shares.

“The net proceeds of the capital raise is expected to give the company enough liquidity to fund the requirements of its existing and expected customer commitments into the mid-term, driving strong growth and returns in the future,” Ocado said.

A separate retail offer will raise up to 6.9 million pounds at the placing price.

Ocado also agreed a new 300 million pound ($367.4 million) revolving credit facility, provided by a syndicate of international banks.

In addition the group reiterated the full year guidance issued in February and updated last month.

Shares in Ocado have lost over half their value over the last year as its growth has slowed.

($1 = 0.8166 pounds)

(Reporting by James Davey, editing by Andy Bruce)