London-listed company President Energy is planning to raise roughly $20 million which will partly be used to help fund its operations in Argentina.

President will offer shares at a price of £0.06 ($0.07) each which it said represented a 14.3%discount to the closing mid-market price of about £0.07 per share on Monday.

The company plans to raise roughly $17.2 million through an accelerated bookbuild and about $2.8 million through a subscription of new ordinary shares.

President said Tuesday the bookbuild would open with immediate effect and was expected to close no later than 3:00pm local time in London.

However it added the closing of the bookbuild, the final size of the placement and the allocations were at the discretion of joint bookrunners Peel Hunt and BMO Capital Markets.

President will use roughly half of the funds raised to help pay for its initial 10-well workover programme of shut in wells in Argentina in order to increase production, while the remaining $10 million will be used to strengthen its balance sheet and allow it to pursue “additional internal and inorganic growth opportunities".

The company also announced the placing was conditional on the proposed restructuring of its existing loan facility with IYA Global.

It is looking to refinance roughly $10 million of the facility with a new loan from IYA on terms it deemed to be more favourable and capitalise the balance of $12 million through the issue of the new ordinary shares at the placing price without absorbing any proceeds from the fundraising.

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President looking to raise funds