Update Reach Energy share oversubscribed by 41.86 times

by **Cals** Fri 08 Aug 2014, 03:11

Update Reach Energy share oversubscribed by 41.86 times

Business & Markets 2014

Written by Gho Chee Yuan of theedgemalaysia.com

Thursday, 07 August 2014 18:38

KUALA LUMPUR (Aug 07): Reach Energy Bhd’s 20 million share under the public portion of the initial public offer (IPO) was oversubscribed by 41.86 times.

In a statement, Reach Energy said the valid acceptances and excess applications received amounted to 857.3 million units, an over-subscription of 20 million shares allocated. A total of 23,821 applications for 857.30 million shares were received from the public.

“A total of 10,839 applications for 349.03 million shares were received under the Bumiputera category,” it said, representing an over-subscription rate of 33.90 times.

“While 12,982 applications for 508.26 million shares were received under the other Malaysian public category, representing an over-subscription rate of 49.83 times,” it added.

Reach Energy will be the largest oil and gas special purpose acquisition company (SPAC) which is expected to make its debut on Bursa Malaysia on Aug 15.

Reach energy said all notices of allotment for the public shares and the attached warrants will be mailed to successful applicants on or before Aug 14.

To recap, Reach Energy aims to raise RM750 million from its IPO of one billion shares.

To sweeten the deal, investors would also get an eight-year free detachable warrant.

From the one billion shares, some 980 million shares have been placed out while the balance 20 million will be made available for balloting by the Malaysian public.

Hong Leong Investment Bank Berhad is the principal adviser, placement agent and underwriter for the IPO.