Fashion show firm Hyve could raise £100m as it takes a big hit from coronavirus lockdown

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Fashion show firm Hyve could raise £100m as it takes a big hit from coronavirus lockdown

By Ben Harrington For The Mail On Sunday

Published: | Updated:

A company that organises Britain’s largest fashion trade show is in advanced talks about raising millions of pounds of fresh funds from stock market investors.

City sources said Hyve, which organises the Pure trade fashion show at Kensington Olympia exhibition centre in London, is weighing a placing of new shares or a rights issue after seeing its business take a big hit from the coronavirus lockdown.

Hyve sets up trade exhibitions and conferences around the world, including Russia, South Africa and Indonesia.

Hyve organises Pure trade fashion show at Kensington Olympia exhibition centre in London

Last week, the company said it had to postpone 33 events until later this year and it rescheduled 12 others for 2021.

Brokers at Numis are believed to be working with Hyve on the cash call although it is not clear exactly how much the business is looking to raise from investors.

Hyve, which in 2018 paid £300million for Ascential’s exhibitions division, has seen its shares crash from £1.02 earlier this year to close at 29.3p on Thursday evening.

If Hyve pursues a placing it could raise around £44million as its market capitalisation stands at about £239million.

A rights issue would allow the firm to ask investors for a much higher sum – possibly more than £100million.

A spokesman for Hyve said: ‘The company is taking a number of measures and reviewing further options to protect the financial position of the business during the coronavirus pandemic and for the long term.’

 

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