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HIBISCUS PETROLEUM BERHAD - PRESS RELEASE

Hibiscus Petroleum Launches IPO Prospectus

Investments in excess of RM150 million raised to-date, retail portion now open to Malaysian public

Kuala Lumpur, 30 June 2011: Hibiscus Petroleum Berhad ("Hibiscus Petroleum" or "the Company") has today launched its Prospectus, in conjunction with the Company's proposed listing on the Main Market of Bursa Malaysia Securities Berhad ("Bursa Malaysia"). Hibiscus Petroleum is pleased to announce that to-date, the total proceeds raised is in excess of RM150 million from selected investors under the private placement exercise.

Hibiscus Petroleum's Initial Public Offering ("IPO") exercise entails the public issue of new ordinary shares through placements to selected investors and applications by the Malaysian public, on the basis of 1 free detachable warrant ("Warrant-A") for every 1 Public lssue share subscribed at an issue price of RM0.75 per share. Each Warrant-A can be exercised into 1 new ordinary share at RM0.50 per Warrant-A, which is at a discount to the IPO issue price of RM0.75 per share.

Hibiscus Petroleum's IPO exercise comprises an issue of between 190 million and up to 390 million new ordinary shares together with between 190 million and up to 390 million Warrants-A by way of private placement to selected investors ("Private Placement"). There will also be an issue of 10.0 million new ordinary shares together with 10 million Warrants-A, to be allocated via balloting, to the Malaysian public ("Retail Portion"). The total proceeds to be raised under the IPO exercise will be between RM150 million and RM300 million.

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Hibiscus Petroleum's Managing Director, Dr Kenneth Pereira said, "We are very pleased with the success of our Private Placement exercise which has attracted numerous investors, a number of whom are involved in the oil and gas industry. Their confidence in our Company is an endorsement of the growth prospects of the exploration and production ("E&P") industry and Hibiscus Petroleum. This is a key milestone for Hibiscus Petroleum, as the amount raised already exceeds the minimum RM150 million required to be raised by a Special Purpose Acquisition Company ("SPAC") under Malaysian listing requirements. With the launch of the Prospectus, the Malaysian public will now have the opportunity to participate in the Retail Portion of the IPO exercise. Additionally, qualified investors will still be able to participate in the placement of the remaining portion of the placement shares."

Hibiscus Petroleum intends to utilise funds raised from the IPO exercise to acquire businesses or assets ("qualifying acquisition" or "QA") that will establish it as an independent oil and gas E&P player in the near to medium term. It will initially target low to moderate risk E&P opportunities that have high upside potential in the South Asia, MiddleEast, East Asia and Oceania regions.

An important aspect of a SPAC is the various protections accorded to investors to safeguard their investment. These include the requirement to place at least 90% of the IPO proceeds in a trust account managed by an independent custodian (Deutsche Trustees Malaysia Berhad in the case of Hibiscus Petroleum), prior to the QA. Funds in the trust account can only be invested in permitted investments such as securities issued by the Malaysian government, money market instruments and AAA-rated papers. The SPAC must complete a QA within three years from listing, failing which it must be liquidated and the net amount in the trust account returned to shareholders.

Shareholders' approval is required for the QA, whereby a majority in number of shareholders representing at least 75% in value of voting securities must approve the QA at a general meeting. Members of the management team and persons connected to them are not allowed to vote on the QA. A refund entitlement is also in place for dissenting shareholders, whereby shareholders who vote against a proposed QA can opt to receive, in exchange for their securities, a pro rata portion of the amount held in the trust account, if the QA is completed.

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Hong Leong Investment Bank Berhad is the Principal Adviser, Placement Agent and Underwriter for the IPO exercise. Hong Leong Investment Bank Berhad's Managing Director/Chief Executive Officer, Ms Lee Jim Leng said, "We are pleased to be given the opportunity to lead the IPO of Hibiscus Petroleum, which will be the first SPAC to be listed on Bursa Malaysia. The success of the placement exercise to-date is already an endorsement of the confidence placed on the Board of Directors and management team of Hibiscus Petroleum. We look forward to the next stage of the IPO exercise which is the subscription of the remaining portion of the placement shares and the balloting of the retail portion."

For enquiries, kindly contact: Head Office HIBISCUS PETROLEUM BERHAD (798322-P) Second Floor, Tower Block Syed Kechik Foundation Building Jalan Kapas, Bangsar 59100 Kuala Lumpur Tel : +6 03 2092 1300 Fax : +6 03 2092 1301 Investors and Media Joyce Theresa Sunita Vasudevan (CFO) [email protected] Telephone: +60 13 365 7835 www.hibiscuspetroleum.com

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Microsoft Word - Press release-Prospectus Launch-30 June 2011 _Final_.doc