The energy infrastructure and technology company’s Rights Issue exercise, along with free detachable warrants undertaken by the Group was oversubscribed by 22.31%.
The said exercise comprises of 844.2 million rights shares on the basis of 2 rights shares for every 5 existing Yinson shares that come with 361.8 million free detachable warrants on the basis of 3 warrants for every 7 rights shares subscribed. The valid acceptance and excess applications totalled 1,032.5 million rights shares, as compared with the 844.2 million made available for subscription.
The Rights shares are scheduled to be listed on the Main Market of Bursa Malaysia Securities Berhad on 28 June 2022.
The proceeds from the exercise will be used to fuel the Group’s growth and expansion plans while improving on the net gearing and financial position.
“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,” Yinson Group Chief Executive Officer Lim Chern Yuan commented.
“This latest Rights Issue is one of the largest equity fund raising in the market since the Covid-19 pandemic. The oversubscription rate demonstrates our shareholders’ enormous vote of confidence, which we take pride in. This has enabled us to raise RM1.19 billion, which is approximately 2.1x larger than our previous Rights Issue in 2014,” Group Chief Strategy Officer Daniel Bong said.
The successful implementation of Yinson’s previous Rights Issue in 2014 has since led to the deployment of 4 FPSOs.
In December 2021, the Group announced its intention to undertake a 1-for-1 Bonus Issue followed by a Rights Issue with free detachable warrants. These proposals were subsequently approved at an Extraordinary General Meeting held on 29 March 2022.
Out of the RM1.19 billion gross proceeds raised, up to 64.0% of the proceeds will be utilised for the 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% will be for the expansion of our renewable energy and green technology businesses, 26.7% for repayment of bank borrowings, 4.6% for working capital and 1.0% for expenses related to this corporate exercise.
