20/12/2011 Miles Nolan
China and Mongolia focused private equity house Origo Partners (OPP) has unveiled plans to raise as much as $35 million by way of a placing at 36p a share.
The cash will help the AIM listed firm capitalise on a raft of investment opportunities, particulary in China where it has forged a strong relationship with the government. Origo boasts it has already received indications of interest worth $32 million, and is conducting a book-building exercise in conjunction with its broker Liberum Capital.
Last month Origo declared its net asset value had dipped to $215.4 million (June 2011: $225.1 million) largely due to a drift in the fair market value of quoted investments. The NAV is 72 cents a share, and net cash at the last count was $21.4 million.
Chief executive Chris Rynning says ‘Origo’s partnership with the Chinese government is expanding and we are looking to increase our exposure to Renminbi.’ The placing will allow Origo to make further investments in the China cleantech and resources space.
The shares have slipped 0.25p to 34.75p this morning, and provide an attractive entry point for investors seeking exposure to China.