- Temple & Webster (TPW) has been placed in a trading halt as it announces the details of an upcoming capital raise
- The online furniture retailer is looking to raise $40 million via an institutional placement to strengthen its balance sheet and fund growth as it shifts towards online shopping
- A total of seven million shares will be issued at a price of $5.70 each
- Temple & Webster has also experienced a strong FY20, with its year-to-date revenue up 68 per cent to $151.7 million compared to last financial year
- Shares in Temple & Webster last traded for $6.31 on June 30
Temple & Webster (TPW) has been placed in a trading halt as it announces the details of an upcoming capital raise.
The online furniture retailer is looking to raise $40 million via an institutional placement to strengthen its balance sheet and fund growth as it shifts towards online shopping.
“We remain very excited about the position of Temple & Webster and our unique opportunity to capitalise on the structural shift from offline to online for furniture and homewares,” CEO Mark Coulter said.
“With the recent acceleration in this trend, we think it is financially obedient for the company to strengthen its balance sheet to provide us with the flexibility to make an additional investment into our growth, including our technology and product service offering,” he added.
A total of seven million shares, comprising roughly 6.2 per cent of existing issued capital, will be issued under the fully underwritten placement at $5.70 per share.
This price represents a 9.7 per cent discount to the company’s closing price on June 30 of $6.31, and a 6.4 per cent discount to the five-day volume-weighted average price of $6.09.
The shares are expected to settle on July 7 and be allocated and begin trading on the ASX on July 8.
Business update
Temple & Webster has also experienced a strong FY20 with its YTD (year to date) revenue up 68 per cent to $151.7 million from last year.
It has also experienced a 668 per cent growth in earnings before interest, tax, depreciation and amortisation to $7.1 million, compared to the prior corresponding period.
Finally, Temple & Webster maintains it is in a strong financial position, with $29.2 million in cash as of May. Once the placement is complete, it will have a cash balance of $69.2 million.
Shares in Temple & Webster last traded for $6.31 on June 30.