Online furniture and homewares company, Temple & Webster, has successfully completed a $40 million institutional placement to strengthen its balance sheet and fund growth due to the shift towards online shopping.
The proceeds from the placement, which saw the issue of 7 million new shares at a price of $5.70 per share, will be used to pursue strategic growth initiatives including the company’s digital platform and further strengthening its product and service offering.
Given the recent acceleration in the adoption of online purchasing, especially when it comes to Australian homewares and furniture, Temple & Webster is looking to capitalise on any additional organic and inorganic growth opportunities.
“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,” says CEO Mark Coulter.
“With the recent acceleration in this trend, we think it is financially prudent for the company to strengthen its balance sheet to provide us with the flexibility to make additional investment into our growth, including our technology, and product and service offering.”
One recent investment includes an off-shore AI start up, with the aim to bring its AI-driven interior design tools down under in a market first.
The placement was significantly oversubscribed with strong demand from domestic and international institutions, including both existing shareholders and new investors.
Chair Stephen Heath adds that with a stronger balance sheet, the company is well positioned to take advantage of the structural shift from offline to online for furniture and homewares.
“In particular, the raised proceeds provide Temple & Webster with the flexibility to make additional investments in its growth strategy… and we would like to thank our existing and new shareholders for supporting this capital raise.”
June sales were up 130 per cent year on year, with a full year FY20 EBITDA expected to exceed $8 million.
