The company plans to raise £657million through placing of £650million ordinary shares and a £7million retail offer. There will also be an offering of £350million through a convertible bond issue.
At the height of the pandemic in the UK Ocado customers were experiencing long online queues.
Those waiting to pay were told that they were one of around 2,000 customers waiting for groceries.
At the time, Tim Steiner, chief executive of the Ocado group, said: “We are facing quite a different challenge to many, as we scale up Ocado.com to play its part in feeding the nation.”
Online shopping has proven crucial since the coronavirus pandemic, and now accounts for 13 percent of the UK grocery market.
This is almost double the seven percent stake it had pre-pandemic.
In the US, surveys suggest that 90 percent of shoppers who bought groceries online in March would continue to do so.
Alongside this, Ocado’s own customer surveys indicate the online shopping boom will continue.
47 percent of customers who had upped their online spending since COVID began to spread expected to continue shopping online once the crisis is over.
Shares in Ocado have risen around 50 percent since this time last year, vastly outstripping growth of its competitors.
It is trading around six percent lower today, following the trend of the broader stock market losses.
It now has a market capitalisation of around £14.5billion, which is more than Sainsbury’s, Morrisons and Marks & Spencer
Of the offering, Mr Steiner said: “Online grocery is experiencing an inflection point.
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“The current crisis is proving a catalyst for permanent and significant acceleration in channel shift globally which we believe will redraw the landscape for the grocery industry worldwide.
“The significant acceleration in online grocery provides us with greater opportunities than ever before.”
The company recently posted company results that revealed a 40 percent jump in sales in Q2.
Ocaso has scored partnership deals across the world, owing to the development of its advanced online shopping technology.
These have included link-ups with Kroger in the United States, Casino in France and Aeon in Japan.
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