UK-based online grocery company Ocado has revealed plans to raise £575m ($704m) through a share placing to fuel its expansion.

The company will conduct the placing through an expedited bookbuild, with the placing price of the shares due to be determined at the end of the bookbuild.

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Ocado said that certain members of its senior management team, including its CEO and chief financial officer, will subscribe for new ordinary shares in the company’s capital.

Proceeds from the capital raising will be used to help Ocado Solutions’ partners meet growing demand for online grocery services worldwide.

The company’s Technology Solutions business has 58 customer fulfilment centres in the pipeline, with more than 300 modules in total.

Ocado will also continue investing in innovation at a faster rate and aim to strengthen its position as an end-to-end solution provider for online grocery fulfilment.

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In a statement given to the London Stock Exchange, the company said: “The net proceeds of the capital raise is expected to give Ocado Group enough liquidity to fund the requirements of its existing and expected customer commitments into the mid-term, with no additional group financing expected as the business becomes cash flow positive.

“The company will continue to invest in new technology to remain ahead of the industry and establish leadership positions in its existing, as well as new, products and markets.”

In addition to the capital raising, Ocado has entered an agreement for a £300m credit facility with leading international banks.

In March this year, the company reported that its revenue for the first quarter (Q1) of the fiscal year 2022 (FY22) amounted to £564.7m.