Origo Partners raises $30m through share placement

Origo Partners raises $30m through share placement

A portion of the capital will be invested in the firm’s RMB-denominated China Sustainable Development Fund, which was launched in April and counts the Xinxiang municipal government as an anchor investor.

AIM-listed Origo Partners has raised approximately $30 million via an equity placement of 82.2 million new ordinary shares at £0.25 (€0.29; $0.36) each, according to a company statement.

The placing shares will be credited as fully paid and will be of equal footing with existing ordinary shares, including the right to receive all dividends, the statement noted.

Origo will apply for admission for the placed shares to trade on London’s AIM Market. Admission and trading is expected to begin on 17 June.

A portion of the newly-raised capital will be used to bolster the Origo China Sustainable Development Fund – the firm’s first RMB-denominated fund targeting fast-growing private Chinese companies in the clean technology and sustainable development sector, according to an Origo spokesman.

The fund, which is targeting commitments of $75 million for the fund, is expected to see a first close in 2010. So far it has secured an anchor investment from the Xinxiang municipal government, which has committed $18 million. It will be the first in a series of funds Origo will raise for the domestic Chinese market, Chris Rynning, chief executive officer of Origo, said in a previous statement.
The remaining capital from the share placement will be invested in deals, the spokesman said, without elaborating further. Besides China, the firm also has interests in Australia and Mongolia.
Origo Partners is a private equity investment and consulting firm focused on China-linked growth opportunities. The firm, which invests across multiple sectors, is listed on the London Stock Exchange with a market capitalisation of  £59.4 million.

Origo’s investments in China include Rising, a Beijing-headquartered anti-virus software and content security vendor; Isaklife, a furniture producer also based in Beijing; and China E-Bill, a point of sale mobile payment solutions to Chinese consumers.