On The Beach raises £26.0m to provide 'greater resilience'

On the Beach said on Wednesday that the number of shares placed represented approximately 5.0% of the company's existing issued share capital, and will raise gross proceeds of approximately £26.0m.

The London-listed group also highlighted that the placing price represented a discount of approximately 5.0% to OTB's closing price of 347.5 pence on 6 July.

On the Beach undertook the placing, with Numis Securities and Peel Hunt acting as joint bookrunners, as a result of the "extended disruption" to international travel from the UK throughout 2021 caused by the ongoing Covid-19 pandemic.

The firm stated it was in its best interest to seek supplementary financing in order to provide it with "greater resilience", ensure that it had sufficient funding available to increase marketing spend and, in "more pessimistic scenarios", protect its "strong market position"

"The directors believe the headroom from the placing would allow the group to simultaneously increase investment in its digital platforms; continue to drive brand through investment in online and offline marketing activity and improve conversion with attractive low deposit schemes," said OTB

Admission of the shares was expected to become effective on or before 9 July. Following Admission, the total number of ordinary OTB shares in issue will be 165.39m.

As of 0925 BST, On the Beach shares were down 3.17% at 336.48p.