KUALA LUMPUR (Dec 24): Offshore oil and gas service provider Carimin Petroleum Bhd has aborted plans to raise RM29.94 million in a private placement of new shares.

In a bourse filing, Carimin said after further deliberation, it has decided not to proceed with the private placement, but did not elaborate.

On May 27 this year, it proposed to undertake a private placement of up to 46.78 million new shares, or 20% of the total existing issued shares, under which it would raise total gross proceeds of RM29.94 million based on the indicative issue price of 64 sen per placement share.

It had planned to use the bulk of the proceeds on acquisition of vessels to reduce the group's reliance on chartering additional vessels from third party operators for its marine services segment and for working capital. Currently, it owns an anchor handling tug supply vessel and two accommodation workboat vessels.

The proposed corporate exercise was supposed to be completed by the second quarter of 2021, but Carimin on Dec 10 submitted an application to seek Bursa Securities' approval for an extension of time to implement the private placement. Following Friday's announcement, it has withdrawn the extension of time application.

As at 4.36pm, Carimin shares traded up 0.5 sen or 0.78% to 64 sen, bringing a market capitalisation of RM152.02 million. Its share price has fallen 7.86% year to date.