Recently, THG has successfully raised £90 million in a major fundraising effort, aimed at simplifying its debt structure and reinforcing its financial position for future growth. The funding was secured through a combination of a share placing and refinancing initiatives, with a significant £60 million contribution from THG’s founder and CEO, Matthew Moulding.
Moulding subscribed to £31.2 million worth of shares at a price of 32.3p per share—a 5% discount on the previous day’s closing price—and further injected £54.6 million via a non-interest-bearing convertible loan. The remaining £30 million was raised through an oversubscribed placing of new shares, demonstrating strong investor confidence in the company’s strategic direction.
THG emphasized that the capital raise, along with the extension of its £150 million revolving credit facility to May 2029, will reduce the group’s leverage ratio from 3.2x to 2.6x, based on a projected adjusted EBITDA of £92 million for 2024 (excluding Ingenuity). The fundraising follows the recent demerger of THG Ingenuity, allowing the company to sharpen its focus on core operations as a global retailer and brand owner.
Moulding, who has been deeply involved in the fundraising process, highlighted his commitment to the business by underwriting a substantial portion of the initiative. In a LinkedIn post, he revealed that he had invested £110 million in THG shares over the past five years, despite waiving his £3 million annual salary and expenses since the company’s IPO.
Reflecting on his investment, he remarked, “Joining the LSE 4 ½ years ago hasn’t proved too profitable for me or my family. I will soon have bought £110m of THG shares in less than 5 years… I do get free coffee though.”
