Hill Station, the UK "super-premium" ice cream maker, has raised £1.4m in a share placement and listed on Aim, the stock market for small companies.
Hill Station will use the funds to build a new factory
The Wiltshire-based company placed 17.5 million shares at eight pence each, valuing the firm at £4.7m ($8.65m).
It said it would use the proceeds to build a larger factory in Calne and lift spending on marketing activities.
Hill Station said it planned to increase its supplies to Tesco, Sainsbury's, Waitrose and Somerfield.
"This financing means that we are ideally placed to increase capacity and drive the brand forward," said joint managing director Charles Hall.
"Super-premium dairy ice cream is a dynamic growth segment in the UK market - and Hill Station will now be competing aggressively for a substantial share."
The company estimates that UK retail take-home sales of super-premium and premium ice cream will grow to £268m in 2006 from £224m last year.