Hengyuan raises RM234m in oversubscribed rights issue
Hengyuan Refining Company raised 234 million ringgit from a stock rights offering that drew more than double the expected demand. The petroleum products manufacturer received applications for 368.64 million rights shares by the Oct. 17 deadline, representing an oversubscription of 122.88 percent. The exercise offered 300 million new shares, including 150 million free warrants at 78 sen each, with buyers receiving one warrant for every two shares purchased.
Most funds will buy crude oil feedstock to boost production efficiency and lower costs per barrel. Major shareholder Malaysia Hengyuan International, which controls 51.02 percent of outstanding shares, bought its complete allocation plus excess shares to secure the 155 million ringgit minimum target. The new shares and warrants will begin trading on Bursa Malaysia’s Main Market on Thursday, Oct. 30.
