ViaLogy raises 2 mln stg via placing

(Reuters) - ViaLogy (VIY.L), a provider of sensor technology to oil explorers, said it had raised about 2 million pounds through a placing of about 50 million shares at 4 pence each.

The offer price represents a discount of 30 percent to the stock's Monday's close of 5.75 pence.

ViaLogy, whose QuantumRD oil exploration technology helps firms to avoid drilling dry holes, said the net proceeds of the placing would be used in expanding its energy business.

"In what continues to be a difficult environment to raise money, it is particularly pleasing that the placing was substantially oversubscribed," chairman Terry Bond said in a statement.

The company said it was confident about the future, helped by a number of new customers, its backlog and a strong pipeline.

The company's shares, which fell as much as 13 percent, were down 3 percent at 5.6 pence by 8:47 a.m. BST on Tuesday on the London Stock Exchange.

(Reporting by Purwa Naveen Raman in Bangalore; Editing by Unnikrishnan Nair)