IPO CLIQ Energy to own more brownfield assets

IPO CLIQ Energy to own more brownfield assets
Business & Markets 2013
Written by Chong Jin Hun of theedgemalaysia.com
Friday, 22 March 2013 15:29


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KUALA LUMPUR (Mar 22): CLIQ Energy Bhd, which is scheduled for a listing on Bursa Malaysia next month, plans to own more brownfield oil and gas (O&G) assets in the long term.

According to its prospectus, which was released on the exchange's website today, this will enable the CLIQ to recoup its capital outlay within a shorter time frame compared with greenfield investments.

"We intend to acquire rights for discovered O&G fields of small-to-medium size with relatively low to moderate risk," the firm said.

CLIQ said brownfield assets with existing production and development activities will account for some 75% of the special purpose acquisition company's (SPAC) investment.

Greenfield assets which is still under the exploration stage will make up the balance 25%.

SPACS which have no income-generating businesses at the time of listing, undertake IPOs to raise the required funds for future acquisition of commercial assets.

CLIQ said it intends to acquire its first asset with its IPO proceeds within three years from its listing which is scheduled on April 10 this year.

Its IPO involves a sale of between 200 million and 667 million new shares at 75 sen each. This translates into proceeds of between RM150 million and RM500.25 million. The IPO proceeds will finance the firm's proposed acquisition of O&G assets across the Asia Pacific region, and working capital needs.

The public issue shares come with an equal number of warrants. Upon listing, CLIQ will have a market capitalisation of between RM206.25 million and RM644.06 million.