ASOS GOES CAP IN HAND TO INVESTORS FOR £75M

FAST fashion giant Asos has tapped investors for £75m to shore up its finances and help fund a turnaround plan.

It announced the fundraising on Thursday and yesterday confirmed it had sold around 17.9m shares for 418.1p each. The shares fell 2.9pc, or 12.1p, to 406p.

It came after it this month revealed losses of over £290m for the six months to the end of February as it was hit by pressure on household budgets.

Asos said the money raised will help it change its buying and merchandising practices.

It has also agreed a £200m loan and a £75m credit agreement with lender Bantry Bay Capital, which will run until April 2026.

Following the fundraising, analysts at broker Liberum upgraded their rating on the stock to ‘hold’ from ‘sell’ but cut their target price to 470p from 500p warning that executing the turnaround plans still carried a ‘high’ risk. They also noted that in a ‘worst-case scenario’ Asos may yet need to raise even more cash if weak demand from shoppers persists.