KUALA LUMPUR (March 29): Yinson Holdings Bhd said Kumpulan Wang Persaraan (Diperbadankan) (KWAP) is the anchor investor for it’s private share placement, following completion of the cash call exercise to raise RM283.2 million to expand its renewable energy and green technology business.
The private placement involved an issuance of 120 million shares or about 4.1% of the group’s total issued shares at an issue price of RM2.36 per share.
In a statement, Yinson said KWAP subscribed 50 million shares as the anchor investor supporting the transition placement.
To put into perspective, KWAP would spend RM118 million for subscribed 50 million placement shares.
Commenting on the private placement, Yinson group chief executive officer Lim Chern Yuan said that prospects for the group’s renewables, and green technologies (greentech; also known as Yinson GreenTech) businesses have never been stronger, given the world’s critical need to strengthen global clean energy infrastructure to facilitate a just and equitable energy transition.
“Proceeds from this placement will enable us to accelerate our strategic plans for Yinson renewables and Yinson GreenTech to capitalise on market opportunities, which we are confident will contribute to stronger, sustained returns over the long-term,” Lim said.
KWAP chief investment officer Hazman Hilmi Sallahuddin said KWAP’s investment aligns with its commitment to responsible investing, which the fund has firmly committed to, as a signatory to the UN (United Nations) Principles for Responsible Investment.
“By mobilising capital towards energy transition initiatives, we aim to foster positive environmental impact, while delivering long-term value to our stakeholders,” he added.
The proceeds will primarily be used to expand Yinson’s renewables and greentech businesses. Yinson expects this move to contribute positively to the group’s earnings potential, moving forward.
Of the total proceeds of RM283.2 million, the bulk or RM253.2 million has been allocated to the expansion of renewables and greentech businesses, RM28.2 million to fund its working capital requirements, and the remaining RM1.8 million to defray costs for the exercise.
It was Yinson’s third successful cash call since venturing into the oil and gas sector.
Prior to this placement placement, Yinson’ss last cash call was its RM1.19 billion rights issue.
The latest rights issue was over twice the size of its previous one — done more than eight years ago in 2014, which raised RM568.04 million and put the group in a position to deploy four floating production, storage and offloading vessels back then.
Yinson’s major shareholders are Lim Han Weng and family with a 24.49% stake, the Employees Provident Fund (EPF) with 17.85%, and KWAP with 6.25%.
As at Jan 31 this year, Yinson had RM2.97 billion in cash and cash equivalents. It had total borrowings of RM16.32 billion, increased by 70.3% from RM9.58 billion a year ago.
At noon break on Friday, Yinson’s share price traded six sen or 2.6% higher at RM2.38, bringing the group a market capitalisation of RM7.29 billion.