Australian auto and outdoor retailer Super Retail Group said it plans to raise $203 million in funds in a bid to boost its online strategy and overall business in 2020.
The owner of Supercheap Auto, Rebel Sport, BCF and Macpac said company shares would be offered one-for-seven at a price of $7.19, compared to its current share price of $8.50.
Super Retail said it will use the capital raised to invest further in its digital capabilities, including better supply chains, increased analytics, and further simplification of the company’s business model.
“The equity raising enables us to continue the execution of our strategy, further strengthen our omni-retail capabilities and continue to organically grow our four core brands,” said Anthony Heraghty, Super Retail Group Chief Executive Officer and Group Managing Director, in press release.
The company made the equity-raising announcement after recording a 126% increase in online sales for the past quarter, despite a dip in physical store sales, thanks to the Covid-19 pandemic.
Total group sales declined 26.2 per cent in April when compared to the year prior, but rebounded in May, up 26.5 per cent on the year prior, led by the Supercheap Auto, Rebel and BCF brands. Macpac was impacted by the NZ government-imposed closure, said the
“We are very pleased with the robust trading performance of the Group despite Covid-19 and thank our team members for their dedication to the business during the pandemic,” added Heraghty.
“The execution of our strategy has continued during Covid-19, with our four core brands well positioned to take advantage of shifts in consumer behaviour that have been observed through the pandemic,” concluded Heraghty.