Modern Water to expand business in China, Middle East
UK-based water technologies company Modern Water has raised funds of GBP10m ($15.5m) to expand its business in China and the Middle East.
Modern Water is planning to use the net proceeds to pursue new opportunities, which has been identified by its membrane division to commercialise its forward osmosis technology in China and the Middle East.
The company is also planning to use the funds to grow its monitoring business by licensing and acquiring new and proven products to improve its international business network.
Modern Water raised the funds by placing 20 million new ordinary shares with both new and existing institutional shareholders at a price of 50 pence per ordinary share.
The placing price is discounted at a rate of 17.7% to the closing middle market price of 60.75 pence per ordinary share as on 11 February 2013.
Modern Water executive chairman Neil McDougall said the company has received support from its existing and new shareholders in raising the funds.
"This is a great vote of confidence in Modern Water," McDougall added.
"The funds raised will enable us to increase the level and reach of market activities and invest in our growth strategy in key markets, with a particular focus on activities in China.
"We intend to invest in further improvements in membrane efficiency for the Membrane Processes division and to expand the Monitoring division through acquisitions."
The Middle East, which has the largest number of water stressed countries in the world, has almost 70% of current global desalination plants.
It is expected that the rise in population and temperature in the region will increase the demand for water.
China, which had 20% of the world's population in 2011, only has 7% of its water resources.
To meet the growing demand of water, the country is anticipated to become the second largest desalination market after Saudi Arabia in the next four and a half years.