Ovostar intends to sell 8% via private placement

Ovostar Union (OVO PW) announced plans to sell 8% of share capital (post-placement) via a private placement to institutional investors, the company reported in a filing yesterday. The company’s principal shareholder will sell its stake at the placement and  will subsequently be granted the right to subscribe for new shares when they are issued at the placement price. The intended use of proceeds is the additional capacity increase by the company, with capex requirement standing at USD 50 mln. Ovostar placed 25% stake at IPO on WSE in June 2011 raising USD 33.2 mln.