Aisi Realty Public raises USD 5.4 mln via SPO for Brovary warehouse

Aisi Realty Public Ltd (AISI LN) announced yesterday via a Regulatory News Service release that it has conditionally raised USD 5.4 mln in gross proceeds from the sale of 222,081,507 new ordinary shares to new and existing investors at 1.5 pence per share. The company said it plans to use the proceeds to complete its Brovary warehouse project (due for occupancy in 4Q09) and pay certain outstanding operating expenses. The conditional share placement is dependent on shareholder approval (an EGM has been scheduled for August 9) and admission to trading on AIM, which Aisi said expects to take place on August 11. In other news, Aisi released its 2008 annual results: its investment portfolio was valued by DTZ at USD 64.8 mln as of December 31, 2008; its net asset value was USD 82.5 mln (USD 0.42 per share). Aisi reported that it had an ungeared balance sheet with no debt as of year-end 2008. The publication of its 2008 reports lead to the restoration of trading in the company’s ordinary shares on the AIM market, which had been suspended as of June 30. Andriy Gostik: Most likely, the lion’s share of the new equity capital was provided by the developer’s existing shareholders. In the tight credit environment, this looks like the only feasible option to raise funds needed to continue financing projects under construction. We do not expect the news will boost the stock’s price: the stock is rather illiquid and the subscription price is 2.7x lower than the last trade price on June 29, before the suspension of trading in the company’s stock.