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Origo Sino-India
rambutan2 - Thu, 21 Dec 06 :
Origo Sino-India plc (the "Company", "Origo") (LSE:OSI), the investment and
strategic consultancy advisory company, that focuses on private equity markets
in China and India, has recently published its Admission Document and its
Ordinary Shares and Warrants (LSE:OSIW) have today been admitted to trading on
the AIM market of the London Stock Exchange Plc. The Company has raised #12.8m
gross and has also issued warrants at a 10% premium to the issue price, and
dealings in the Ordinary Shares and the Warrants commenced today.
Key Highlights
* Origo is a private equity investor and a strategic consultancy
division. It provides its shareholders with exposure to growth opportunities and private equity returns in China and India.
* Origo enjoys profitable revenue streams from both private equity
investing and strategic consultancy services. The company invests in private
companies in expectation of capital gains, while charging fees for consulting
services related to further fundraisings, M&A and strategic development.
* Origo has aligned itself with two major institutions who provide a
source of high quality deal flow. In China, Origo will work closely with
ChinaEquity, a leading private equity firm. In India, Origo has entered into a
memorandum of understanding with SBI Capital Markets ("SBI CAP"), one of the
oldest players in the Indian Capital Markets. Origo has a former chairman of SBI and the chief executive of ChinaEquity on its board, the latter as its executive chairman.
* SBI CAP provides Origo with an opportunity to review the prospect of
investing in its clients in India which are looking for equity fund raisings of
up to $20 million through private placement.
* Origo has signed agreements with 2 Chinese companies and 7 Indian
companies to provide both financing and advisory services. Many of these
companies are profitable, at expansion or late stage, and are ready for sale or
for independent listings. Origo currently has 9 portfolio companies in China,
most of which are in early stage.
* The pipeline is also strong with 23 potential investments in
expansion stage or late stage. The current pipeline of identified investment
opportunities focuses on the telecom, media and technology (TMT) and industrial
sectors, where growth is particularly strong in both countries and where the
company's management have a successful track record and expertise.
* The management and support services are based in China with the
management team having many years of Sino-India investment experience. Core
team members have realised a number of private equity investments in the past.
The Placing Statistics
* Origo has raised #12.8 million gross of new money via a placing of
25,673,238 Ordinary Shares
at a price of 50 pence per share
* Each Ordinary Share carries a warrant exercisable at 55p
* Market capitalisation on Admission is expected to be approximately #32.6
million
* The placing proceeds will be used to make new equity investments in China
and India, as well as follow-on investments in certain existing portfolio
companies
* Dealings in Origo Ordinary Shares commenced on AIM on 21 December 2006
* Seymour Piece Limited is the nominated adviser and broker
Commenting on the AIM Admission, Chris Rynning, Chief Executive Officer of
Origo, said:
"We are delighted to have received strong investor support at a global level for this fundraising and flotation. It's an exciting time for Origo. The AIM
flotation provides funds to strengthen the balance sheet, make strategic
investments, and in turn maximise shareholder returns going forward."
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