Origo Partners (LON:OPP) is set to raise US$30 million via a share placing, adding to existing cash resources to fund “new and well-advanced” investments opportunities in the Chinese clean-tech and agriculture sectors and in the Mongolian natural resources sector.
The total amount of the funding of the investment opportunities will consist of a seed investment of US$10 million in the Origo China Development Fund, US$20 million into Mongolian mineral resource investment opportunities and another US$20 million in the Chinese clean-tech and agriculture sectors.
In addition to the investment into the Origo China Sustainable Development Fund, the company has shortlisted 6 investment opportunities totalling US$40 million. The fund will be the first RMB-fund for Origo in the domestic Chinese market and is intended to raise the company’s exposure to China opportunities, where the likely preferred exit is via the domestic stock markets.
“The funds raised from the proposed placing will enable Origo to launch its first RMB fund which will significantly enhance our platform for investing and realizing value on the Chinese mainland. We will also be able to capture recent mining and clean technology opportunities in China and Mongolia which our team have identified and progressed,” said chief executive of Origo Partners Chris Rynning.
Origo Partners has approximately US$20 million of cash at hand, which is expected to cover its operating costs for the next 18 months. The company is exploring selected divestments along with value-creating financings, expecting cash from mid-term liquidity events in H1 2011 at the earliest.
Origo Partners expects to report a net asset value per share of US$0.61, or 41 pence when it releases its full year results for 2009 in late June.