Listed retailer raises £64m through share placing and subscription

Doncaster-based DFS Furniture has raised about £64m through a share placing and subscription.

A total of 42,309,457 new ordinary shares in DFS were placed by Jefferies International, Peel Hunt, Barclays Bank PLC, acting through its investment bank and BNP PARIBAS.

This was at a price of 150 pence per placing share, with existing and new institutional investors.

In conjunction with the placing, certain directors and members of the senior management team of DFS will subscribe for an aggregate of 296,662 new ordinary shares in the capital of the company at the placing price,.

The placing shares and subscription shares together represent approximately 19.9% of the issued ordinary share capital of DFS prior to the placing and subscription.

Explaining the reason for the placing yesterday, DFS explained this move would, “significantly strengthen the Group’s balance sheet and liquidity position during this period of unprecedented uncertainty due to COVID-19.”

It added: “Members of the Board have consulted with the company’s major institutional shareholders ahead of the release of this announcement.

“The Placing structure has been chosen to minimise costs, time to completion and use of management time during an important and unprecedented period for DFS.”