Hengyuan Refining Company Berhad announced that shareholders have overwhelmingly approved its proposed renounceable rights issue of up to 300 million new ordinary shares, together with up to 150 million free detachable warrants, at its Extraordinary General Meeting (EGM) held today.
Separately, the company confirmed it has entered into a strategic supply and credit arrangement with Trafigura Pte Ltd, one of the world’s leading physical commodity traders. Under this arrangement, Trafigura will provide Hengyuan with flexible payment terms and delivery schedules that align with refinery production cycles and market conditions, enabling the Company to optimise cash flow and inventory management.
The collaboration also gives Hengyuan priority access to Trafigura’s diverse global crude portfolio, reducing exposure to supply disruptions and pricing volatility. By leveraging Trafigura’s risk management expertise and extensive logistics network, Hengyuan will be able to source crude grades that maximise refining margins and enhance operational efficiency.
In July 2025, Hengyuan announced the proposed renounceable rights issue of up to 300 million new ordinary shares, together with up to 150 million free detachable warrants, on the basis of one (1) rights share for every one (1) existing Hengyuan share held and one (1) warrant for every two (2) rights shares subscribed, at an issue price and entitlement date to be determined and announced later (“Proposed Rights Issue with Warrants”).
Its major shareholder, Malaysia Hengyuan International Limited which holds 51.02% of the Company’s issued shares, has undertaken to subscribe for its full entitlement. This commitment secures a minimum fundraising of RM155 million under the exercise.
The company said the majority of funds raised will be allocated for the purchase of additional crude oil feedstock—the primary raw material for refining and manufacturing petroleum products. Maintaining robust feedstock levels is expected to enhance production efficiency, reduce unit costs per barrel, and strengthen overall competitiveness.
