KUALA LUMPUR (Sept 13): Sapura Energy Bhd shares jumped 9.86% in active trade at mid-morning today after CIMB IB Research said the group is likely to announce many additional E&C contract wins in the coming months, as well as more drilling contracts, and a potential strategic drilling partnership.

At 10.14am, Sapura Energy rose 3.5 sen to 39 sen with 179.68 million shares traded.

In a note today, CIMB Research said Sapura Energy had on Sept 12 announced that it was negotiating to sell 50% interest in Sapura Upstream for a whole-company EV of US$1.6 billion, which is higher than CIMB’s previous valuation.

“The upcoming capital raising exercise and the Sapura Upstream sale may raise more than RM7 billion in cash, half of its outstanding term loans (ex-revolving credits).

“We reiterate Add in light of the re-rating catalysts above, and raise our ex-rights SOP-based target price to 64 sen (cum-rights 71 sen),” it said.