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Yinson Holdings Bhd was scheduled to be listed on the Main Market of Bursa Malaysia on June 28, 2022. — Picture by Firdaus Latif

Tuesday, 21 Jun 2022 7:23 PM MYT

KUALA LUMPUR, June 21 — Yinson Holdings Bhd’s, a global energy infrastructure and technology company, rights issue exercise, along with free detachable warrants was oversubscribed by 22.31 per cent.

It was scheduled to be listed on the Main Market of Bursa Malaysia on June 28, 2022.

Yinson said the exercise comprises 844.2 million rights shares on the basis of two rights shares for every five existing Yinson shares, with 361.8 million free detachable warrants on the basis of three warrants for every seven rights shares subscribed.

In a statement today, the company said the valid acceptance and excess applications totalled 1,032.5 million rights shares compared to the 844.2 million made available for subscription.

Yinson noted that the proceeds from the exercise will be used to fuel the group’s growth and expansion plans while improving the net gearing and financial position.

Group chief strategy officer Daniel Bong said this latest rights issue is one of the largest equity funds raising in the market since the Covid-19 pandemic and this has enabled the company to raise RM1.19 billion, which is approximately 2.1 times larger than the group’s previous rights issue in 2014.

“Out of the RM1.19 billion gross proceeds raised, up to 64 per cent of the proceeds will be utilised for the floating production storage and offloading (FPSO) Maria Quitéria project awarded by Petróleo Brasileiro S.A. in Brazil.

“As for the rest of the proceeds, it is estimated that 3.7 per cent will be for the expansion of our renewable energy and green technology businesses, 26.7 per cent for repayment of bank borrowings, 4.6 per cent for working capital and one per cent for expenses related to this corporate exercise,” he said.

Meanwhile, group chief executive officer Lim Chern Yuan said that from the pre-pandemic years until the recent return to normalcy, global demand for reliable sources of energy such as oil, gas and renewables has been steadily rising.

“This has driven the growth of the FPSO market, especially in Brazil, along with the global development of green energy and its related technologies.

“Undertaking our second rights issue will enable us to continue delivering our targets for our offshore production business while realising the full potential of our renewables and green technologies businesses,” he added. — Bernama