Sino Gas wraps up $80m raising

Sino Gas & Energy Holdings has completed an $80 million capital raising to fund a development plan for its onshore gas projects in China.

Sino Gas said the oversubscribed placement of 500 million shares at a price of 16 cents each to sophisticated and institutional investors was strongly supported by existing shareholders, and also attracted new investors to the company.

The price of the placement represented a 10.7 per cent discount to Sino Gas’s five-day volume-weighted average price.

“Sino Gas has made very good progress recently to significantly increase the reserves base and bring our assets into commercial production,” managing director Glenn Corrie said.

“The proceeds from this raise will build on this by funding the business materially towards the Overall Development Plan and will place us in a strengthened operational and financial position.”

The directors of the company have agreed to subscribe for a total of 1.6 million shares, with settlement scheduled in early June.

Sino Gas is also offering eligible shareholders the chance to participate in a $15,000 share purchase plan.

Euroz Securities and RBC Capital Markets were the joint lead managers to the placement.

Sino Gas shares were 5.5 per cent lower to 17 cents a share at 11am.