Hibiscus proposes new placement exercise

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KUALA LUMPUR (Oct 14): Hibiscus Petroleum Bhd has proposed to undertake a placement of up to 89.16 million new shares in the company,representing up to 10% of its current issued share capital.

In a filing to Bursa Malaysia this evening, Hibiscus said this new proposal will replace the earlier proposed private placement of up to 56.54 million new shares, which was first announced on Nov 4, 2013.

“The exact amount of proceeds to be raised from the proposed placement cannot be determined at this juncture, as the amount would depend on the issue price and the actual number of placement shares to be issued,” said Hibiscus.

However, it explained that based on an illustrative issue price of RM1.46 per placement share, representing the five-day volume weighted average market price of Hibiscus’ shares of RM1.46 up to and including the date of the announcement, the proposed placement is expected to raise gross proceeds of up to RM130.18 million.

The entire proceeds, minus the expenses for the placement exercise, will be utilised “for the development of the West Seahorse oilfield in the offshore Gippsland Basin, Victoria, Australia, pursuant to the award of the VIC/L31 production licence by the Australian National Offshore Petroleum Titles Administration (NOPTA) and the drilling of production, appraisal and/or exploration wells in Australia, Asia Pacific and the Middle-East”.