HRC to raise RM300mil via renounceable rights issue

PETALING JAYA: Hengyuan Refining Co Bhd (HRC) has announced that it is firmly on track to raise up to RM300mil through a proposed renounceable rights issue of up to 300 million new ordinary shares.

This will be done together with up to 150 million free detachable warrants on the basis of one rights share for every one existing share held and one warrant for every two rights shares subscribed for at an issue price and on an entitlement date to be determined and announced later.

Malaysia Hengyuan International Ltd, HRC’s major shareholder with a 51.02% stake of issued shares, has undertaken to subscribe for its full entitlement of rights shares. In a statement, HRC said this commitment secures the minimum fundraising of RM155mil under the exercise.

“The bulk of proceeds from the rights issue is intended for the purchase of additional crude oil feedstock, the main raw material used in the refining and manufacturing of petroleum products.