Friday August 3, 2012
Hibiscus to raise RM210mil via private placement
KUALA LUMPUR: Hibiscus Petroleum Bhd aims to raise RM210mil through the issuance of 210 million new convertible redeemable preference shares (CRPS) via a private placement and two of its existing shareholders will be increasing their shareholdings by subscribing to this exercise.
The shareholders are Tan Sri Arumugam via his vehicle Sri Inderajaya Holdings Sdn Bhd and Ezra Holdings Ltd group managing director Lionel Lee Chye Tek. Sri Inderajaya and Lee have a shareholding of 1.48% and 9.14% respectively as of June 29.
At an issue price of RM1, the conversion price of the CRPS will be fixed at a premium of 10% of the five-day volume weighted average market price of Hibiscus or RM1.60, which ever is higher.
The CRPS holders will also have the option to convert all or part of their holdings of CRPS into new Hibiscus shares.
Hibiscus told Bursa Malaysia that it had identified four placees for the CRPS, and they included Sri Inderajaya, Lee, MDL Energy Services Ltd and Hanizah Mohd Nasir.
Of the placement, Sri Inderajaya will take up five million CRPS, Lee, 9.48 million, MDL 16 million and Hanizah 22 million. Collectively, they will be taking up 52.48 million CRPS.
The balance of 157.52 million CRPS shares will be placed out to investor to be identified at a later stage.
Hibisucs said that the proposed private placement of CRPS was expected to raise total gross proceeds of RM210mil, where RM168mil is for future acquisitions and RM42mil for working capital.
Hibiscus is also proposing to increase its authorised share capital from RM25mil comprising 2.4 billion shares of 1 sen each and 100 million redeemable convertible preference shares (RCPS) of 1 sen each to RM50 million comprising 4.69 billion Hibiscus shares, 100 million RCPS and 210 million CRPS by the creation of an additional 2.29 billion new Hibiscus shares and 210 million new CRPS.
Hibiscus said that the proceeds raised would only be utilised in relation to acquisitions or investments in development or production assets which may include potential exploration upside and associated transaction and other costs.
This deal is expected to be completed by the second quarter of 2013.