Hibiscus Petroleum raises RM203.6 million from CRPS issue, eyes stakes in Southeast Asia oil & gas assets

24 Nov 2020 / 00:13 H.

PETALING JAYA: Hibiscus Petroleum Bhd has raised RM203.6 million through the issuance of 203.6 million Islamic convertible redeemable preference shares (CRPS), the largest CRPS issuance this year, with the proceeds going towards the acquisition of interests in producing upstream oil and gas assets in the Southeast Asia region.

In regard to the issuance, its chairman Zainul Rahim Mohd Zain stated that as a syariah counter, the company recognised the importance of ensuring that it remains syariah compliant.

“We understood early on in the process that we were in a position to meet the requirements for the CRPS to be syariah-compliant, and management were determined to obtain the necessary endorsement from the Securities Commission, with the guidance of our syariah adviser, CIMB Islamic Bank,” he said in a press release.

The CEO of CIMB Investment Bank, the issuance’s joint bookrunner, Jefferi Mahmud Hashim, hoped that the success of this significant transaction will cap a major milestone in the development of the Islamic equity capital market in particular and at the same time reinforce Malaysia’s dominant position as a leader in Islamic finance globally.

The bank’s senior managing director, Mohamad Safri Shahul Hamid, said the Islamic equity instruments are seen to be less developed compared wit the Islamic fixed-income market, but he hopes that the CRPS will play a part in championing and spurring the growth of the Islamic equity and capital markets in Malaysia.

“Despite the challenging external environment, we have succeeded in raising RM203.6 million, which marks a strong vote of confidence from the investment community towards the company, the board of directors and management team of Hibiscus Petroleum.” said one of Hibiscus’ joint bookrunner, Hong Leong Investment Bank group managing director and CEO, Lee Jim Leng.

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