UPDATE 1-HaloSource IPO raises $80 mln

UPDATE 1-HaloSource IPO raises $80 mln

  • HaloSource gets $50 mln, to fund expansion
  • Selling shareholders get $30 mln
  • PE firm Origo sells partial stake in co, books profit (Adds details)

Oct 12 (Reuters) – HaloSource Inc, a clean water technology company focused on emerging markets, said an initial public offering of its common stock raised about $80 million.

The company said it received about $50 million in gross proceeds from the offering, while certain selling shareholders placed shares with institutional investors at 135 pence apiece, raising $30 million.

China-focused private equity firm Origo Partners (OPP.L), which had a 15.4 percent stake in HaloSource prior to the placing, said it sold about 60 percent of its stake in the company for $11 million.

Origo had invested $10 million in HaloSource in July 2008.

HaloSource, which has manufacturing facilities in the United States, India, Pakistan and China, said it planned to use the funds for expansion, including the construction of manufacturing plants for its drinking water purification HaloPure business.

The company’s market capitalisation would be 100 million pounds or $158 million and it would have 73.8 million shares in issue at the time of admission, Seattle-based HaloSource said.

The company’s shares are expected to start trading on the London Stock Exchange on Oct. 18. ($1=.6296 Pound) (Reporting by Shivani Singh in Bangalore; Editing by Anne Pallivathuckal)