Synthetic fuels firm Oxford Catalysts Group (LON:OCG) has conditionally placed 24.5mln shares at 125p each.
The £133mln-valued company is set to raise around £30.6mln (gross) from the placing, which was oversubscribed.
The new shares will represent around 21.1% of the enlarged ordinary share capital.
The shares have been on a good run of late, rising more than 50% over the last month, so the call for cash is well-timed.
The placing price is below last night’s mid-market closing price of 148.5p, but is at a 14.5% premium to the average mid-market closing price of Oxford Catalysts over the 30 trading days prior to the announcement.
The funds from the placing will be used to consolidate the group’s market position and to speed up the roll-out of its products.
"This oversubscribed fund raising, achieved under difficult market conditions, is a huge vote of confidence in Oxford Catalysts' technology and potential. We are delighted by the very significant support received from existing shareholders, several new major institutional investors and a new strategic investor,” said Roy Lipski, chief executive officer of Oxford Catalysts.
The group also updated the market on its subsidiary Velocys’s legal battle in the US with Catacel, a supplier of catalysts to Velocys competitor CompactGTL.
Velocys is claiming infringement by Catacel of its micro-channel related patents. CompactGTL responded by requesting a re-examination of eight of the group’s US patents.
Oxford Catalysts said that thus far, seven of the eight US patents have been re-examined, with six being left unchanged; the seventh had one immaterial amendment.