Dublin-based accommodation booking platform Hostelworld has raised approximately £13.8 million (€15.2 million) by selling new shares.
The company said that it sold 17.6 million ordinary shares for 72 pence each and that an existing shareholder has subscribed for a further 1.45 million ordinary shares, altogether raising gross proceeds of approximately £13.8 million, subject to the sales being completed, according to The Irish Times.
Aiming To Strengthen Its Position
Hostelworld stated that the reasons for the placing were to marginally strengthen its position including its balance sheet, to provide essential liquidity and to enable it to come out of the COVID-19 crisis in a "marginally better position".
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Hostelworld anticipates that its net revenue in 2020 will be 20% of the figure recorded for 2019 before rising to 60% in 2021, and that its 2020 net bookings will be 25% of the figure recorded for last year before rising to 65% next year.
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