Strong demand for keenly priced 2ergo placing

The decision by mobile solutions company 2ergo to issue shares at a heavily discounted price has paid off, with punters queueing up to get their hands on the company's stock.

Numis Securities, which had been given the option by the company to increase the number of shares it placed in the market, has exercised that option to meet strong after-market demand.

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Three of the firm's directors, namely Chief Executive and founder Neale Graham, director and founder Barry Sharples and Non-Executive Chairman Keith Seeley, put their money where their collective mouth is and subscribed for a total of 7.0m shares.

That demonstration of confidence in the company's prospects may have played a part in the recovery in the share price this week from below 23p to 26.5p near Thursday's close.

As a result of the exercising of the option to place more shares, the company will raise an additional £0.45m to top up the £2.2m (before expenses) raised by the original placing of shares.

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.