Barakah targets RM126m from revamp exercise
KUALA LUMPUR: Barakah Offshore Petroleum Bhd, or better known as PBJV Group Sdn Bhd, will raise RM126 million from a restructuring exercise to fund overseas expansion and use the proceeds as working capital locally.
Barakah was incorporated on March 1 2012 to facilitate its listing via the reverse takeover of Vastalux Energy Bhd.
Barakah securities will be floated on Bursa Malaysia's Main Market next month, upon completion of the restructuring exercise.
Under the scheme, Barakah will issue 130 million new shares at 65 sen each and 208 million non-renounceable redeemable convertible unsecured loan stocks (RCULS) at 20 sen each, on the basis of one RCULS for every three Barakah shares held by shareholders. This will help raise RM126 million.
At the company's inaugural press conference yesterday, its founder and deputy executive chairman Nik Hamdan Daud said 52 per cent, or RM65.4 million, of the gross proceeds will be used as working capital.
Another RM5 million is for business expansion in markets such as Saudi Arabia, Brunei and Vietnam.
"We are not going to spread our portfolio to all regions. We are focused on low-risk regions with a good growth story," said Nik Hamdan, who will be Barakah's controlling shareholder post-listing. Barakah will also tap prospects at home.
"The demand here is so huge and I have mobilised our resources back to Malaysia. The industry outlook will be underpinned by RM300 billion capital expenditure by Petroliam Nasional Bhd," he said.
The company's order book has reached an all-time high of RM400 million, coupled with a project tender book of RM500 million.
Its client portfolio includes big names like Petronas Carigali, SapuraKencana Petroleum Bhd and ExxonMobil.
For fiscal year 2012, the upstream oil and gas offshore market player registered RM202 million revenue and RM33 million net gain.
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