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.