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.

The share price of 2ergo almost halved last Friday after the company had to price its shares at 10p each to persuade investors to get on board.

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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.