New Listing Reach Energy falls 8%, to finalise qualifying acquisition within time frame

by **Cals** Sat 16 Aug 2014, 00:34

New Listing Reach Energy falls 8%, to finalise qualifying acquisition within time frame

Business & Markets 2014

Written by Adrian Wong of theedgemalaysia.com

Friday, 15 August 2014 11:16

KUALA LUMPUR (Aug 15): Reach Energy Bhd, which fell as much as 8% on its maiden trading day, expects to finalise its qualifying acquisition (QA) in the Asia Pacific region within the given time frame, according to managing director Shahul Hamid Mohd Ismail.

Reach Energy, a special purpose acquisition company (SPAC) focusing on oil and gas assets, had earlier indicated it would acquire its first asset in the Asia Pacific within one to two years.

Today, Shahul said the firm was committed to its expansion plans.

"Our board of directors and management team will provide the utmost commitment in growing the company. The first step in doing so is by completing our QA in the Asia Pacific region within the given timeframe," Shahul told reporters during Reach Energy's listing ceremony here today.

Reach Energy shares, which earlier fell as much as six sen to 69 sen, has reduced losses.
The stock was traded at 70 sen at 10.52am with some 212 million shares done.

This compares to the stock's issue price of 75 sen.

Its free warrants, however, rose significantly to 24 sen at 11.06am from its reference price of 0.5 sen. A total of 445 million warrants changed hands.

Reach Energy warrants and shares were the most-actively traded entities across Bursa Malaysia.

Earlier, Reach Energy shares and warrants had opened at 72.5 sen and 28.5 sen respectively.

The company is the fourth oil and gas SPAC to list on Bursa Malaysia. This followed Hibiscus Petroleum Bhd, CLIQ Energy Bhd and Sona Petroleum Bhd.

Reach Energy's initial public offering (IPO) had earlier planned to raise RM750 million.The IPO comprises one billion new shares at 75 sen each and a similar number of free detachable warrants on the basis one warrant for one share.