British e-commerce company THG has announced an “oversubscribed and upsized” equity raise through a share placing and subscription offer, amounting to £95.4m ($124.6m).
The rise exceeded the company’s initial target of up to £75m.
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Existing shareholders, including CEO Matthew Moulding, who personally invested £10m, contributed approximately £50m to the fundraise.
The new funding is earmarked to provide its lossmaking technology arm, Ingenuity, with “sufficient medium-term funding as the business approaches positive cash generation on a standalone basis”, according to a statement from THG.
On 17 September 2024, THG disclosed its plans to demerge its Ingenuity division, which would result in a post-demerger company comprising THG Beauty and THG Nutrition.
THG founder and CEO Matthew Moulding said: “Today we have separately announced significant progress on our strategy to demerge THG Ingenuity into a private company supported by major shareholders.
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By GlobalData“THG PLC will remain a listed leading consumer brands group, with our planned transfer to the ESCC well on track.”
The company also confirmed that Frasers Group has expressed its intention to invest £10m in THG, strengthening a strategic partnership between the two firms announced in June 2024.
The strategic partnership with Frasers includes a multiyear agreement to utilise Ingenuity’s capabilities and the integration of Frasers Group’s credit and loyalty platform, Frasers Plus.
THG outlined that the net proceeds exceeding the £75m required for the Ingenuity demerger will be allocated for “general corporate purposes”.
Barclays and Jefferies served as joint global coordinators and Barclays, Jefferies and Peel Hunt as joint bookrunners.
Ingenuity, which has 4,000 employees and operates 12 distribution centres globally, is set to become an independent entity following the demerger.
THG will continue to manage its beauty and nutrition businesses, including well-known brands such as Myprotein and Cult Beauty, as well as other ventures such as Lookfantastic and the City AM newspaper.
The company’s latest financial results indicated a 3.6% decline in total revenues year-on-year, totalling £934m for the six months ending June 2024.
