Ted Baker, the struggling fashion retailer, has announced the successful results of its recent share placing. Despite a prolonged decline in the value of the company’s shares in recent years, the share issue proved to be popular among investors. The company had previously revealed its plan to raise £95 million through a share placing, along with an additional £10 million through a public offer for subscription. The new shares were priced at 75p each, and the offer closed on Wednesday. Surpassing expectations, Ted Baker managed to raise a total of £105 million.
A total of 140 million new shares were issued, and the share issue was oversubscribed, indicating strong investor interest. Trading for the new shares is set to begin on Friday morning, and they are seen as a bargain at the moment. Currently, Ted Baker’s share price stands at approximately 113p, despite a minor decline of almost 4% on Thursday morning. However, the perception of the shares as a bargain hinges on the company’s ability to reverse its fortunes and prevent further decline in share value.
Aside from the financial implications, the share issue also brought about a change in Ted Baker’s ownership structure. Founder Ray Kelvin, who previously held a significant 35% stake, only purchased £3.5 million worth of the new shares. As a result, his stake in the company has been diluted to 15.8%. On the other hand, Toscafund has nearly doubled its stake to 26.4% and is now the retailer’s largest stakeholder.
The funds raised from the share placement will provide much-needed relief for Ted Baker as it navigates the challenges brought about by the Covid-19 crisis. Additionally, the capital infusion will support the company’s revamped growth strategy, with a strong focus on digital channels. With this financial boost, Ted Baker aims to rejuvenate its business and regain stability in the highly competitive retail industry.
1. [Ted Baker investor relations website](https://www.tedbakerplc.com/investors/investor-relations)
2. [Financial Times article on Ted Baker’s share placing](https://www.ft.com/content/4c7b758b-7f9f-45d7-854a-24ad2e157fd8)