UPDATE 1-Zenergy raises 9.5 mln stg, '08 loss widens

* Says funding will support expected scale-up in the U.S.

* Places 7.9 mln shares at 120 pence each

* R&D expenses rise 14.5 pct

* Shares rise as much as 5 pct (Adds details)

April 29 (Reuters) - Superconductor specialist Zenergy Power (ZEN.L) said on Wednesday it raised 9.5 million pounds ($13.83 million) through a discounted offering to fund its working capital needs and that its loss before one-off items and research and development expenses for 2008 widened by 56 percent.

Releasing its key financials for 2008, the company said its revenue for 2008 surged more than seven fold to 2.03 million euros ($2.65 million), while research and development expenses rose 14.5 percent to 3.03 million euros.

Loss before one-off expenses, R&D costs, share-based payments and others for 2008 would be about 2.5 million euros, compared with 1.6 million euros a year ago, Zenergy, which develops clean energy devices employing highly efficient superconductive components, said.

Loss for the period attributable to equity holders of parent widened slightly to 5.3 million euros, from 5.2 million euros, it added.

The company placed about 7.9 million shares with institutional investors at 120 pence each, a 7 percent discount to the stock's closing price on Tuesday.

The net proceeds from the issue would be used to fund its commercial activities in the United States and ongoing research and development activities, it said. Zenergy, which was recently awarded a contract to build and test a "smart grid" device to improve New York City's electrical system, said the funding will support an expected scale up of marketing, sales, manufacturing and administration in its U.S. activities.

Zenergy shares were up 4.3 percent at 134.5 pence at 0747 GMT on the London Stock Exchange. ($1=.6867 Pound) ($1=.7673 Euro) (Reporting by Ramkumar in Bangalore; Editing by Gopakumar Warrier)