WHSmith has raised £165.9 million, after placing 15.8 million new shares at 1050p per share, in an attempt to stabilise its finances during the Coronavirus lockdown.

Chief executive Carl Cowling was among the investors, subscribing to more than 7,000 shares, which will be admitted to the stock exchange on 9 April.

WHSmith stated that the fundraise would help strengthen its balance sheet, working capital and liquidity position.

It also revealed it secured new financing arrangements with its lenders, including a new £120 million banking facility from BNP Paribas, HSBC and Santander.

While the vast majority of its store estate has temporarily closed, the 203 WHSmith stores that contain Post Offices are remaining open during the lockdown, along with 140 stores inside UK hospitals.

Yesterday, the retailer said it was at an ”advanced stage” of preparations for a share placing representing a maximum of 13.7 per cent of its total issued share capital - meaning it could raise between £200 million and £300 million.

The move follows WHSmith’s share price falling 58 per cent in the last six weeks, cutting the company's value to £1.2 billion.

At the end of last year, WHSmith's investors backed a $400 million takeover bid for Marshall Retail Group, to accelerate the growth of its profitable international travel business.

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