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Key Points:
- THG PLC raised approximately £95.4 million through the issuance of 194.7 million new Ordinary Shares, representing 14.6% of existing shares.
- The successful Placing involved significant participation from new and existing investors, with Frasers Group committing £10 million to the company.
- The new shares are set to be listed on the FCA’s Official List and begin trading on the London Stock Exchange on October 15, 2024.
THG PLC (LSE:THG) has announced the successful completion of a substantial fundraise, which includes the Placing of new Ordinary Shares and a concurrent Subscription and Retail Offer. The fundraise will result in the issuance of 194,722,333 new Ordinary Shares, accounting for approximately 14.6% of the company’s existing issued shares prior to this initiative. This move is anticipated to raise gross proceeds of about £95.4 million.
In the Placing, THG successfully placed 138,265,306 shares with a mix of new and existing investors, including significant contributions from Frasers Group and long-term shareholders who expressed a commitment to subscribe before the launch. This segment of the fundraise generated approximately £67.7 million. Additionally, existing shareholders subscribed for 45,408,163 shares, bringing in around £22.2 million. Retail investors contributed £5.4 million through the PrimaryBid platform, acquiring 11,048,864 shares.
The Placing Price was set at 49 pence per share, reflecting a discount of roughly 5.2% compared to the closing price of the previous trading day, October 10, 2024. THG engaged in discussions with key shareholders prior to the Placing to ensure adherence to pre-emption rights during the allocation process. The strong backing from both existing shareholders and new investors reflects confidence in THG's strategic direction.
A significant aspect of the recent developments is the ongoing partnership with Frasers Group, which was established on June 24, 2024. This partnership includes a multi-year Ingenuity agreement, enabling the deployment of Frasers' credit and loyalty platform, Frasers Plus, for THG's Beauty and Nutrition customers. It also involves the introduction of Myprotein products in Sports Direct stores. As part of this collaboration, Frasers has committed a strategic investment of £10 million in THG, highlighting their dedication to the partnership.
The fundraise also aims to provide IngenuityCo with sufficient medium-term funding, with an expected total of approximately £75 million net proceeds. The additional £5.4 million raised through the Retail Offer will be allocated for general corporate purposes.
Barclays and Jefferies acted as Joint Global Coordinators for the fundraise, while Barclays, Jefferies, and Peel Hunt served as Joint Bookrunners. Upon issuance, the new Ordinary Shares will be fully paid and will hold equal rights alongside the existing shares. The company intends to apply to the Financial Conduct Authority (FCA) for the new shares to be listed on the Official List, as well as to the London Stock Exchange for trading on its main market. Admission is anticipated to occur at 8:00 AM on October 15, 2024, with trading expected to commence simultaneously.
Following the completion of this fundraise, THG’s issued share capital will comprise 1,525,760,174 Ordinary Shares, along with other classes of shares. This figure will serve as the basis for shareholders to calculate their voting rights and assess any changes in their interests in the company, as mandated by the FCA's Disclosure Guidance and Transparency Rules.
