Ocado is set use the proceeds of its July float to build a £200 million distribution centre in the West Midlands.
The online retailer has identified a 35-acre site near Tamworth in Staffordshire where it hopes to open the 350,000 sq ft warehouse by the end of 2012.
Finance director of Ocado Andrew Bracey told the Telegraph: “Ocado is delighted to be gaining a foothold in the West Midlands, its superb transport links will make our service available to even more customers.”
Ocado cut the price range for its flotation from 200p-275p to 180p-200p after analysts said the original price was too high. The firm has already run up loses of £350m, but is expected to make a profit next year.