KUALA LUMPUR (Dec 20): Sapura Energy Bhd dipped 1.7% in active trade at mid-morning today, in tandem with the weaker crude oil prices.

Oil prices fell on Thursday to erase most of their gains from the day before, resuming declines seen earlier in the week amid worries about oversupply and the outlook for the global economy, according to Reuters.

The front-month US crude contract had fallen 78 US cents (RM3.26), or 1.6%, to US$47.39 per barrel by 0129 GMT, nearly offsetting gains of 96 US cents chalked up on Wednesday, it said.

At 10.51am, Sapura Energy fell 1.7% or 0.5 sen to 29 sen with 40.18 million shares done.

Sapura Energy has also drawn investors' attention in recent days after it had on Nov 29 announced that it had secured shareholders' approval for its proposed rights issue to raise up to RM3.98 billion to pare debt. The group said it had received institutional investors' support for the exercise.

On Aug 24, theedgemarkets.com reported that the oil and gas services provider had proposed a rights issue of new ordinary shares besides Islamic redeemable, convertible preference shares (RCPS-i) in the company to raise up to RM3.98 billion to reduce borrowings.

The rights issue is an important part of the group's recapitalisation exercise to pare down its huge borrowings of RM14 billion.

On Dec 14, Sapura Energy announced that its single largest shareholder Tan Sri Shahril Shamsuddin, who is also the president and CEO, has decided to put in an additional RM100 million to subscribe in full for the rights issue that is sweetened with free warrants.

Sapura Energy had also said it received irrevocable undertaking from its direct substantial shareholder Sapura Technology Sdn Bhd for RM400 million worth of rights shares, and from Jurudata Sdn Bhd, which will also be applying for excess rights shares besides its entitlement.

The rights issue of up to 2.4 billion RCPS-i is at 41 sen each is on the basis of two RCPS-i for every five shares held.