RealTime IT News

Shopfast Fights Off Investors In Second Round

The latest round of private capital raising by Sydney-based food and wine online retailer Shopfast has been oversubscribed for a second time.

Both this AUS$12 million (US$7.2 million) injection and last November's AUS$10 million (US$6 million) capital from institutional and private investors have been oversubscribed, with hi-tech investor J&W Seligman making the biggest contribution.

ShopFast chairman Jeff David said the capital would be used to meet the company's growth plans.

"Our aim is to become Australia's pre-eminent online retailer and we have aggressive plans to achieve that position," he said.

"Our Sydney operation is growing at more than five per cent a week. Sales for the first quarter 2000 will be in line with sales for the whole of 1999. We are planning to extend the business to other cities and continue to expand the goods and services we offer customers to meet the demand for online shopping services," said David.

The company has appointed Grant Samuel Associates and Credit Suisse First Boston as financial advisors and is considering other means of raising further development capital, including the option to float on the Australian Stock Exchange.