Boohoo Group Shares Rise Following Oversubscribed Fundraise and Board Changes

Boohoo Group (AIM: DEBS) witnessed a notable increase in its share price on Thursday, exceeding 5%, following the announcement of a significantly oversubscribed and upsized fundraise, coupled with changes to its board of directors.

The online fashion platform successfully raised approximately £40 million, exceeding the initial target of £35 million due to strong investor demand.

The fundraise was executed at an issue price of 18 pence per share, representing a 5% discount to the closing share price of 19 pence on February 17, 2026. The company issued 200,000,000 new ordinary shares through a placing and an additional 22,222,222 new ordinary shares through subscription. Net proceeds from the fundraise totaled approximately £38.7 million after associated expenses.

Admission of the new ordinary shares to trading on AIM is expected to occur around 8:00 a.m. on February 23, 2026. These shares will rank equally with existing ordinary shares, entitling holders to all dividends and distributions.

Board Change

Iain McDonald, Non-Executive Director and Chair of the Renumeration Committee, has stepped down from his role following the fundraise, in which he participated. The company thanked McDonald for his nine years of service. The board confirmed its satisfaction with its size and independence, citing the appointment of Tom Handley last year and Tim Morris's transition to independent Chair in 2024.

Related Party Transactions

Several directors, including Dan Finley, Mahmud Kamani, and Iain McDonald, participated in the fundraise, subscribing for a total of 61,944,443 new ordinary shares.

Frasers Group PLC, holding over 10% of the company's existing ordinary share capital, also participated by subscribing for 59,682,052 new ordinary shares. Independent directors deemed the terms of these related-party transactions fair and reasonable for shareholders, consulting with Zeus Capital Limited.

Group CEO Dan Finley commented, “We are pleased with the strong level of support from new and existing shareholders. The success of the fundraise demonstrates the strength of support for our multi-year turnaround strategy. The fundraise will deliver an improved capital structure for the Group, providing us with greater financial flexibility to execute our turnaround strategy and deliver value for all shareholders.”