Yinson’s RM1.19b rights issue oversubscribed by 22.31%

KUALA LUMPUR (June 21): Yinson Holdings Bhd’s rights issue to raise some RM1.19 billion was oversubscribed by 22.31% as at close of acceptance on June 14.

The valid acceptance and excess applications totalled 1.03 billion rights shares, against the 844.2 million rights shares made available for subscription, the group said in a filing with Bursa Malaysia.

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

The rights shares are scheduled to be listed on June 28, 2022, and 64% of the gross proceeds raised will be utilized for the FPSO Maria Quitéria project awarded by Petróleo Brasileiro S.A. in Brazil.

Yinson plans to utilise 26.7% of the proceeds for repayment of bank borrowings, 4.6% for working capital, 3.7% for expansion of renewable energy businesses and remaining for expenses related to the corporate exercise.

Group chief executive officer Lim Chern Yuan said undertaking the rights issue will enable the group to deliver its target for offshore production business, while realising the full potential of its renewables and green technologies businesses

“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,” he said.

Yinson closed three sen or 1.4% up to RM2.10 on Tuesday (June 21), which translates to a market capitalisation of RM6.44 billion.