Great press today on the back of the raising: Ensogo raising a...

Great press today on the back of the raising:

Ensogo raising a fresh $38 million in equity

• Prashant Mehra
• Business Spectator
• April 21, 2015 11:16AM

ASX-listed online retailer Ensogo is raising $38.1 million through a share placement to institutional investors, for its third capital raising this year.

Ensogo will raise $35m through a share placement to Australian and Asian funds, issuing 189m new shares at 18.5c each. In addition, Chinese online discount retailer Vipshop will take up another $3.1m worth of new shares, at the same price, to maintain its stake at 10 per cent.

Ensogo, which owns and operates a network of retail websites across Southeast Asia and Hong Kong, last month raised $10m by issuing shares to Hong Kong-based fund Ward Ferry Management. It had also secured a $US5m investment from Vipshop earlier in the year.

Those shares had been issued at 17c each. At 10.20am (AEST), Ensogo shares were trading 4 per cent lower at 21.5c.

The proceeds from the current fund raising will be used to ramp up marketing spend and drive customer acquisition and retention. The cash will allow the company to aim to be the largest flash sales business in southeast Asia, Ensogo said in a statement.

The placement was managed by Bell Potter Securities.

Ensogo was founded by Australian internet entrepreneur Patrick Grove, who also established online businesses such as iProperty and iCar under his Catcha Group umbrella.

Catcha Group still owns a stake in the company, which listed on the ASX in December 2013.