EnSilica (ENSI ), a mixed-signal chipmaker, announced it has raised £2m via a placing and subscription of 2.8m new shares at 70p/share.
Additionally, EnSilica launched a retail offer via the BookBuild platform to raise up to £0.5m at the same 70p price. The retail offer will be open only to existing shareholders based in the UK.
EnSilica said the net proceeds would be used to support the company in responding to additional sector and contract momentum, which has exceeded original estimates.
This includes a €5m contract to develop a novel chip to address the next generation of mass market satellite broadband user terminals; a large supply contract with a European industrial OEM worth over US$30m; and a US$3.6m contract with a major automotive Tier 1 company.
View from Vox
The new capital injection of up to £2.5m from new and existing shareholders should help EnSilica deal with the extra momentum generated by the recovery for the chip sector and support its general growth strategy.
The company has generated strong momentum since IPO on AIM in May 2022, with shares currently up 40% since IPO. The fundraise should help EnSilica maintain a strong balance sheet and remain funded through its growing pipeline.
EnSilica is currently pursuing a pipeline of c. £250m of new sales opportunities and new contracts. The company said it continues to trade in line with market expectations.
Follow News & Updates from EnSilica: