Friday 29 Mar 2024
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KUALA LUMPUR (Jan 23): Sapura Energy Bhd shares rose against a weaker broader market today after the oil and gas support services provider said yesterday it successfully raised approximately RM4 billion from its rights issue exercise.

Sapura Energy shares rose as much as 0.5 sen or 1.79% to 28.5 sen so far today.

At 10:33am, the counter was traded unchanged at 28 sen with some 43 million shares exchanging hands. Sapura Energy was the second-most active stock on Bursa Malaysia.

In the broader market, the FBM KLCI fell 14.21 points to 1,687.91 at 10:33am today after crude oil prices and US equities dropped substantially overnight on Tuesday amid global economic growth concerns.

On Tuesday, Sapura Energy announced it had successfully raised about RM4 billion from its rights issue exercise, which closed on Jan 16 this year.

"The group received 8.14 billion valid acceptances and excess applications for its rights shares with warrants, representing a subscription rate of 81.5%. For its Islamic redeemable convertible preference shares (RCPS-i), the group saw just above 100% of valid acceptances and excess applications.

"Proceeds from both the rights issue and the proposed strategic partnership with OMV will be utilised to repay the group's borrowings and for working capital. Upon the completion of both exercises, the group's borrowings will be reduced, and its gearing ratio is expected to drop significantly from 1.74x to 0.62x. Subsequently, the group is expected to benefit from savings in finance cost of approximately RM314 million per annum. The stronger balance sheet will provide greater financial flexibility for the group to deliver its growth plans," Sapura Energy said.

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