The new shares to be placed as part of a £323m fund-raising by Debenhams have been priced at 80p.

The issue represents a 13.3 per cent discount to Debenhams’ closing price on June 3. 404 million new ordinary shares have been placed.

The funds will be used to reduce the retailer’s debt, increase cash available for opportunistic acquisitions, improve financial ratios and increase financial flexibility.

Private equity backer CVC has sold 51 million shares at the issue price, reducing its holding to 33.5 million shares.

The newly placed shares will represent 45.8 per cet of the company’s existing issued share capital and 31.4 per cent of its enlarged share capital following the raising.

Dealings in the new ordinary shares will commence on the London Stock Exchange on June 26.