Asos soars after Covid-19 recapitalisation
Shares in UK online fashion retailer Asos rose by more than 30% on Wednesday after the company completed a £247m ($339.46m) share sale to shore up its balance sheet during the Covid-19 crisis. The rise reflects investor confidence that the fashion retailer will endure disruption from the pandemic causing a sharp drop in demand for fashionable clothes.
Asos sold 15.81m new shares, an 18.8% capital increase, at £15.60 a share. That was a small premium to the company’s closing share price on Tuesday evening.
JP Morgan and Numis Securities were global coordinators on the sale. Barclays, BNP Paribas, and HSBC were bookrunners.The ...