Hungarian energy-efficiency company E-Star Alternative plans to attract up to HUF 2.4 billion in fresh capital through a private placement of new shares, the board announced on Thursday.
The company plans to finance its international expansion from the proceeds of the capital raise.
The new ordinary shares will be offered for subscription at a price of HUF 10,000 per HUF 10 nominal value share to international investors with Warsaw-based Wood and Company Financial Services as underwriter.
Wood and Company will underwrite the issue and will pay the price for the up to 240,000 new shares by June 14.
Wood and Company will sell the shares to international investors.
In line with its authorization the board waived pre-emption rights as carrying out the transaction at the fastest possible pace is in the company's interest.
The capital raise will increase the company's registered capital by a maximum HUF 2.4 million at nominal value or 10% to HUF 26.4 million.
E-Star has sold a combined HUF 2.23 billion in bonds in a recent offering which was the fourth one under the company's HUF 10 billion corporate-bond programs, also designed to fund the company's further international expansion.
E-Star currently conducts operations in Hungary, Romania and Poland, and said earlier that it would expand into two more countries in the central and eastern European region by 2015.
E-Star is an A-category issuer at the Budapest Stock Exchange, floating company shares at the Warsaw Stock Exchange as well on March 22, 2011.