Bolton-based online electrical retailer AO World said it raised £50 million in a placing of 37.73 million shares at 132.5p — representing about 9% of the firm’s share capital.

Further, in a trading update for its full financial year to March 31, AO World said trading was expected to be in line with expectations with revenue expected to be up about 17% to £700 million.

AO World CEO Steve Caunce said: “This is our first capital raising since our IPO and the proceeds will support our continued growth and increasing scale as we pursue our proven strategy.

“We have seen another year of strong growth — in the UK and in Europe — as we continue to deliver on our 4C’s strategy and opened our European distribution centre in Bergheim.

“This was achieved in spite of the challenging dynamics in our markets.

“We remain as committed as ever to doing business the AO way and continuing to deliver for our customers, our people, our supplier partners and our investors.

“The strength in our UK business and our investment in mainland Europe have positioned us well for the future, and this will be further strengthened by the capital raising.”