Malaysian floating prodution, storage and offloading vessel specialist Yinson has completed a fundraising exercise to help finance its growth and expansion prospects, including a new contract in Brazil.
The company said a rights issue exercise, along with free detachable warrants, was oversubscribed by 22.31%.
Gross proceeds of 1.19 billion ringgit (US$270 million) were realised, which Yinson said was about 2.1 times larger than its previous rights issue in 2014.
The exercise comprised 844.2 million rights shares on the basis of two rights shares for every five existing Yinson shares that came with 361.8 million free detachable warrants on the basis of three warrants for every seven rights shares.
Up to 64% of the proceeds will be utilised for the Maria Quiteria FPSO bound for Petrobras’ Parque das Baleias project in Brazil.
About 3.7% of the proceeds will be for the expansion of its renewable energy and green technology businesses, 26.7% for repayment of bank borrowings, 4.6% for working capital and 1% for expenses related to this corporate exercise.
Yinson's chief executive Lim Chern Yuan said: “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 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.”
Chief strategy officer Daniel Bong said: “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.”
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