Thursday, June 30, 2011

Hibiscus Petroleum to raise RM150m to RM300m

KUALA LUMPUR: Hibiscus Petroleum Bhd plans to raise between RM150 million and RM300 million from its proposed listing on the Main Market of Bursa Malaysia Securities Bhd.

The special purpose acquisition company, which launched its prospectus on Thursday, June 30, said that so far it had raised more than RM150 million from selected investors under the private placement exercise.

The initial public offering involves the public issue of new shares which are placed out to selected investors and for applications by the Malaysian public.

This is on the basis of one free detachable warrant (Warrant-A) for every one share subscribed at an issue price of 75 sen per share.

Each Warrant-A can be exercised into one new share at 50 sen per Warrant-A, which is at a discount to the IPO issue price of 75 sen per share.

The listing exercise comprises of an issue of between 190 million and up to 390 million new shares together with between 190 million and up to 390 million Warrants-A by way of private placement to selected investors.

There will also be an issue of 10.0 million new ordinary shares together with 10 million Warrants-A, to be allocated via balloting, to the public.

Hibiscus Petroleum managing director Dr Kenneth Pereira said the private placement had attracted numerous investors, a number of whom are involved in the oil and gas industry.

Hibiscus Petroleum intends to use funds raised from the IPO exercise to acquire businesses or assets that will establish it as an independent oil and gas E&P player in the near to medium term.

It will initially target low to moderate risk E&P opportunities that have high upside potential in the South Asia, Middle-east, East Asia and Oceania regions.

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