Kuala Lumpur-based Hibiscus Petroleum has completed the first tranche of a capital raising via the largest Islamic share issue of its type in Malaysia this year.

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The company said it raised 203.6 million ringgit (US$50 million) via the issuance of 203.6 million Islamic Convertible Redeemable Preference Shares (CPRS), the largest CRPS issuance this year.

Hibiscus had opted for an Islamic CRPS to provide an avenue for its existing and new shareholders, both Islamic and conventional funds, to participate.

Hibiscus plans to raise up to 2 billion ringgit ($490 million) in the multi-tranche CRPS exercise.

The proceeds will be used for the acquisition of interests in producing upstream oil and gas assets in the Southeast Asia region.

The company's chairman Zainul Rahim Mohd Zain said: “We are a Shariah counter and recognise the importance of ensuring that we remain Shariah compliant. We understood early on in the process that we were in a position to meet the requirements for the CRPS to be Shariah-compliant, and management were determined to obtain the necessary endorsement from the Securities Commisison, with the guidance of our Shariah adviser, CIMB Islamic Bank Berhad.”