Hollywood Bowl has announced it is to release 7.5 million new ordinary shares through an accelerated book-building process, in order to raise £10.9m to “strengthen the business in the aftermath of the pandemic.”
The bowling operator will employ Investec Bank acting as sole broker and bookrunner for the share placing, allowing the company to fund strategic organic and non-organic opportunities in preparation for reopening.
“The group has had a strong financial and operational performance since its IPO in 2016,” said a spokesperson for Hollywood Bowl. “This strong performance continued into the first half of the 2020 financial year.”
“The management team was quick to respond to the pandemic and government actions and remains focused on taking action to maintain its strong cash and liquidity position, retaining its team members throughout the centre closure period and ensuring the business is ready to welcome customers back to its centres once it is safe for them to reopen.”
Despite Hollywood Bowl’s 60 plus UK sites remaining shuttered due to the outbreak, the firm added that “extensive cost saving initiatives” have ensured monthly net cash expenditure has been reduced to £1.6m. The new shares will be valued at 145p each, representing a 1.4 percent premium on the mid-market closing price on 16 April.