- A $35m raised at $0.185 per share in oversubscribed conditional
- Strongly supported by both Australian and Asian institutional investors
- Vipshop to exercise its anti-dilution right, invest an additional $3.1
million and maintain a 10% stake
- Funds used to ramp up marketing spend and drive customer acquisition
- Provides the Company with the balance sheet and platform to deliver on
its strategy to be the Number 1 flash sales business in South East Asia
Ensogo Ltd (ASX:E88), a leading e-Commerce business in South East Asia and Hong Kong, is pleased to announce it has undertaken a conditional placement of 189m new fully paid ordinary Ensogo shares to select institutional investors at an issue price of A$0.185c per share to raise total proceeds of A $35 million. In addition, Vipshop, the Company’s strategic shareholder and China’s leading online discount retailer, has committed to exercise its anti-dilution right with respect to this capital raising. Vipshop has agreed to subscribe for approximately $3.1 million worth of new shares at the same issue price of $0.185 per share and will hold approximately 10% of the Company on completion of the share issues.
The Company will aim to significantly increase its unique customer/buyer base over the next 18 to 24 months via the following approximate application of funds:
- $29.0m to fund marketing programs associated with customer acquisition and
- $2.0m in CAPEX related to the ongoing development of the technology
platform, including logistics and fulfillment system; and
- $7.0m in additional working capital and for offer costs
Kris Marszalek, chief executive officer of Ensogo, commented, “We are extremely pleased to have completed this latest round of funding. These new funds will allow us to invest aggressively in growing our customer base and improving the quality of our
service to millions of buyers across the region. On completion of the placement and Vipshop’s top-up, the additional funding will mean that we are well-positioned to execute on the tremendous opportunity our strategic relationship with Vipshop brings,as well as on the enormous opportunity for e-Commerce in Southeast Asia.”
The Placement was heavily oversubscribed, with particularly strong interest from large, global funds based in Asia. This follows the recent strategic investment in the Company by Vipshop, and the conditional placement of $10 million of new Ensogo
shares to WF Asian Reconnaissance Fund Limited (“Ward Ferry”, a fund managed by Ward Ferry Management).
Kris Marszalek also commented “We believe the recent investments from Vipshop and other large global institutional investors, is recognition of the opportunity Ensogo has to be the dominant flash sales player in South East Asia. We have the technology platform in Ensogo Edge, the strategic relationships and now the balance sheet to deliver on that opportunity”.
The placement is subject to Ensogo shareholder approval and will occur in two stages. The first stage, representing approximately 83 million new shares, will occur shortly after the Company’s annual general meeting on Wednesday, 22 April 2015 (subject to the Company’s shareholders voting to refresh the Company’s placement capacity under ASX Listing Rule 7.1). The second stage, representing 106 million new shares, will occur shortly after a general meeting to be held by the Company in late May 2015 for the purpose of approving the share issue. The issue of shares to Vipshop is conditional on the approval of shareholders at that general meeting.
Bell Potter Securities Limited acted as Sole Lead Manager to the Placement.
Ensogo Ltd is a leading e-Commerce business in South East Asia and Hong Kong.Listed on the Australian Securities Exchange and headquartered in Singapore with operations in Hong Kong, Singapore, Malaysia, Philippines, Indonesia and Thailand,
Ensogo is focused on connecting products for sale to over 600m+ consumers in South East Asia and Hong Kong through its e-Commerce websites.
Ensogo intends to continue to capitalise on its market-leading positions in the rapidly
growing e-Commerce / flash sales market throughout the region.