Ocado, the British online supermarket and technology group, plans to raise 1 billion pounds ($1.3 billion), giving it more firepower to capitalize on the rapid growth of the online grocery market triggered by the coronavirus crisis.
The group said on Wednesday it would raise about 657 million pounds through an equity placing and retail offer and about 350 million pounds through the issue of guaranteed senior unsecured convertible bonds due 2027.
Internet retailers and supermarkets have seen delivery orders rocket in recent months as lockdown measures have kept people indoors.
The firm is launching a major fundraising bid to rapidly expand both its own internet sales operation and the production of robot factories for supermarkets worldwide to capitalize on surging demand for home deliveries.
Ocado has no retail stores but sells grocery items via its website and app, using state-of-the-art robot warehouses for packaging and dispatching customer's order.
Chief executive Tim Steiner believes that many shoppers forced to buy food over the web during lockdown will now permanently stay away from physical stores - giving his firm a golden opportunity to dominate the market as grocers adapt.
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