ASX-listed online car classifieds business iCar Asia has tapped Bell Potter to raise close to $17.5 million, with BRW rich-lister Patrick Grove committing an extra $5 million, sources told Street Talk.
The placement will see around 70 million new shares issued in south-east Asia-based iCar Asia for $22.5 million. It is understood that institutional investors were briefed on the capital raising on Wednesday and Thursday.
Shares were being offered at 32¢ apiece, an 11 per cent discount to Tuesday's closing price. iCar Asia's stock entered a trading halt on Wednesday.
The group's largest shareholder Catcha Group, founded and run by Grove, who is also chairman and co-founder of iCar Asia, will commit $5 million to the raise for more than 15 million shares. Catcha Group holds 28.6 per cent of iCar Asia.
The remaining $17.5 million - around 62 million shares - will be fully underwritten by Bell Potter. Investors were told the proceeds would be used for several purposes including to fund its growth strategy, new products, and increased marketing.
It is understood that ASX-listed Carsales, which owns 20.1 per cent of iCar Asia, is mulling whether to participate in the capital raising.
iCar Asia runs online car classifieds businesses in Malaysia, Indonesia and Thailand and is hoping to capitalise on Asia's growing middle class.
iCar Asia will announce details of the raise on Friday ahead of a resumption in trading of the stock.
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