LONDON (ShareCast) - (Sharecast News) - Sunda Energy said on Friday that its WRAP retail offer was multiple times oversubscribed, prompting it to increase the size of the offer to partially accommodate excess demand.
The AIM-traded, Southeast Asia-focused gas exploration and appraisal group raised £0.47m through the issue of 1.88 billion new shares at 0.025p each, alongside 940 million warrants on a one-for-two basis.

It said the strong response demonstrated "exceptional support" from both existing and new retail investors.

Chief executive Dr Andy Butler said the high level of demand underscored growing confidence in Sunda's strategy.

"The exceptionally strong take up of this retail offer is very welcome and a great testament to the investment case for Sunda Energy," he said.

"The offer was closed earlier than expected and was multiple times oversubscribed.

"I thank investors for this exceptional support and my fellow directors and colleagues' consent to stand aside to partially accommodate demand pending a general meeting and shareholder vote for their share subscriptions."

Due to the oversubscription, Sunda deferred the planned management subscription announced on 15 October, which would now require shareholder approval at a forthcoming general meeting.

That subscription was expected to raise an additional £0.24m through the issue of 960 million shares and 480 million warrants, bringing total gross proceeds to £0.71m.

The company said if the subscription was not approved, the directors and senior management would instead provide zero-coupon loans on equivalent terms, to be converted into shares once the necessary authorities were granted.

Admission of the new retail offer shares to AIM was expected around 21 October.

Following admission, Sunda's issued share capital would comprise 30.52 billion shares, each carrying one voting right.

Subject to shareholder approval, the management subscription shares were expected to be admitted to trading in early November.

At 1318 BST, shares in Sunda Energy were down 3.85% at 0.03p.

Reporting by Josh White for Sharecast.com.

• News Channel