KUALA LUMPUR, Sept 3 — Hibiscus Petroleum Bhd is seeking Bursa Malaysia Securities’ (Bursa Securities) approval for a second six-month extension from September 22, 2021, to March 21, 2022, to complete the implementation of its private placement exercise to raise up to RM2 billion.
Since the launch of the Islamic convertible redeemable preference shares (CRPS) programme in September 2020, the company has only issued RM203.6 million CRPS.
In March this year, Bursa Securities granted the O&G exploration and production firm a six-month extension from March 22 to September 21, 2021, to complete the exercise.
In a filing with Bursa Malaysia today, Hibiscus said it sought the second extension in order to have an additional funding channel to fund the balance consideration for the proposed acquisition of Fortuna International Petroleum Corporation for US$212.5 million (RM882 million) in cash, apart from other sources of funds.
“These other sources of funds include, inter-alia, potential debt and internal funds, which are targeted to be prioritised over the issuance of CRPS.
“The extension is a means to ensure that the company has the flexibility to launch and implement subsequent tranches of the private placement of CRPS, only if required,” it said.
Hibiscus assured that the company obtained the approval from Bursa Securities for a second extension, it would continue to be mindful of the potential dilutive effects of sizeable subsequent tranches of the private placement of CRPS to existing shareholders.
“Hence, the issuance size and timing for any subsequent tranche(s) of CRPS will be considered very carefully after taking into account the market conditions, impact of dilution to the existing shareholders of the company and/or the entry of strategic or high quality investor(s),” it added. — Bernama
