By SHAHEERA AZNAM SHAH / Graphic By TMR
Sapura Energy Bhd has proposed a rights issue of new ordinary shares and Islamic redeemable, convertible preference shares (RCPS-i) amounted to RM4 billion to reduce borrowings in a bid to enable its businesses to grow independently.
In an exchange filing last Friday, the oil and gas service provider noted the rights issue includes up to 9.9 billion of new shares priced at 30 sen and 998.6 million free warrants.
The rights issue of RCPS-i includes issuances up to 2.4 billion shares at 41 sen each.
“The exercise entails raising up to RM4 billion, of which up to RM3 billion will be through the ordinary shares with free warrants and up to RM1 billion through the RCPS-i,” Sapura Energy said in a separate statement.
As part of its plans in strengthening its core businesses, Sapura Energy is mulling over the option to list its exploration and production (E&P) business and forming a strategic partnership for drilling business.
“The group has been formulating a plan that will enable our three business segments to operate independently.
“The plan may involve the listing of the E&P business and exploring a possible strategic partnership for its drilling business which would result in the strengthening of group’s core businesses,” the statement read.
President and group CEO Tan Sri Shahril Shamsuddin said the company is determined to capitalise on emerging opportunities.
“The rights issue will enable us to strengthen our balance sheet and continue with our growth momentum which includes bidding for and executing higher value projects globally,” he said.