Malaysian offshore services company T7 Global has launched a fundraising effort to finance its working capital needs as it eyes up several new oil and gas contract opportunities.

The company said it is proposing a private placement of up to 20% of the total number of issued shares of T7 Global to third-party investors at an issue price to be determined later.

T7 estimated it could generate proceeds of 44 million ringgit (US$10.5 million). As at 27 August 2021, the total issued share capital of T7 was 205 million ringgit comprising 633.8 million shares.

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An estimated 78% of the proceeds, assuming receipt of 44 million ringgit, will be directed to a contract with Petronas Carigali for the provision of plug and abandonment integrated services for the Pulai-A project.

T7 also intends to put new capital into its recruitment and talent acquisition services business.

The company has an orderbook of about 2 billion ringgit ($480 million), mainly attributed to its energy subsidiaries Tanjung Offshore and T7IR.

The company said in its quarterly report last month that the Bayan mobile offshore production unit project is on track and T7 expects to "see a significant upside to our earnings growth next year when the Bayan MOPU is commissioned".

The company is pursuing several new contracts including another mobile offshore production unit and construction projects worth 3 billion ringgit.