Issue of Equity
Velosi Limited
20 March 2008
20 March 2008
VELOSI LIMITED
(the 'Company' or 'Velosi')
Placing of 3,842,000 new Ordinary Shares at 115 pence per share
The Board of Velosi are pleased to announce that Charles Stanley Securities has,
on behalf of the Company, completed a placing (the 'Placing') of 3,842,000 new
Ordinary Shares of US$0.02 each (the 'Placing Shares') at a price of 115 pence
per new Ordinary Share with institutional investors to raise approximately £4.42
million.
Charles Stanley Securities, as agent for the Company, has conditionally agreed
to use its reasonable endeavours to procure subscribers for the Placing Shares.
The Placing Shares will represent 8.8 per cent. of the enlarged issued share
capital of the Company. The Placing Price of 115 pence per share represents a
1.3 per cent. discount to the middle market closing price of 116.5 pence per
Ordinary Share on 19 March 2008.
As announced on 29 February 2008, during 2007 Velosi established new offices in
Angola, Ghana and Russia and for the first time began acting as full service
supplier in Egypt. In addition to a number of smaller contract wins,
significant contracts were won with Chevron, ExxonMobil, Shell EP Europe,
Confapi (the trade association for small and medium-sized businesses in the
industrial sector in Italy) and BP. Since the year end, the new Angolan office
has secured a new contract with Chevron. Under the terms of the contract,
Velosi will provide Construction Management and Inspection Services personnel
to Chevron's oil and gas production operations in Cabinda, Angola. The proceeds
of the Placing will be used to augment the Company's existing working capital
facilities and for the development of the Group's business. In particular the
new funds will be used to satisfy the working capital requirements of the new
contracts secured by the Company and for expansion into new geographical
territories.
Application will be made to the London Stock Exchange for the Placing Shares to
be admitted to trading on AIM. It is expected that Admission will become
effective and that trading will commence on 27 March 2008. Following the
admission of the Placing Shares to trading on AIM, the Company will have
43,472,614 Ordinary Shares in issue. The Placing Shares will, when issued and
fully paid, rank pari passu in all respects with the Company's existing Ordinary
Shares, including the right to receive any dividend or other distribution
thereafter declared. The Directors have utilised the Company's authority to
issue the new ordinary shares granted at the Annual General Meeting of the
Company held on 7 June 2007.
Commenting on the Placing Nabil Jalil, the Company's Chief Executive, said:
'Velosi continues to expand, both through its service offerings and its
geographic spread in buoyant market conditions. We are continuously winning
larger contracts around the world and, with this additional funding, we are in a
strong position to continue to service those contracts to the highest standard
whilst continuing the Group's growth and expansion.
As a result of the high number of significant contracts won in 2007, recent new
contract wins, and with synergies and returns from recent acquisitions coming
through, the Board remains very positive on the Group's trading outlook for 2008
and beyond.'
-End-
Enquiries:
Velosi Limited Tel: 020 7930 0777
Dr Nabil Abdul Jalil
Joe Vincent
Dan Ooi
Strand Partners Tel: 020 7409 3494
James Harris
Warren Pearce
Charles Stanley Securities Tel: 020 7149 6000
Mark Taylor
Freddy Crossley
Cardew Group Tel: 020 7930 0777
Tim Robertson
Emma Consett
Notes to editors:
About the Velosi Group
The Velosi Group, founded in 1982, provides asset integrity and HSE services to
a number of leading national and multinational oil and gas companies, including
BP, Shell, ExxonMobil and Chevron. The Velosi Group operates globally through
four principal offices in the USA, the UK, Malaysia and the UAE and has
operational or representative offices in a further 36 countries worldwide.
Velosi joined the AIM market on 21 August 2006. For more information, visit
www.velosi.com.
This information is provided by RNS
The company news service from the London Stock Exchange