Reach Energy’s 20m new shares oversubscribed nearly 42 times

KUALA LUMPUR: Reach Energy Bhd’s 20 million new shares for the public under its listing exercise was oversubscribed by 41.86 times.

The special purpose acquisition company (SPAC) said on Thursday there were 23,821 applications for 857.29 million public issue shares from the public.

Reach Energy, the largest oil and gas SPAC on Bursa Malaysia to-day, will be listed on Aug 15.

Under its IPO, it offered one billion new shares at 75 sen each and to entice investors, it offered one warrant for each share subscribed.

Reach Energy expects to raise RM779.17mil in proceeds from the IPO of which RM710.62mil would be used to acquire a target company or assets, while RM42.54mil would be for working capital and RM26mil as estimated listing expenses.

Of the RM42.54mil for working capital, it said RM15.46mil would be remuneration of the management team, qualifying acquisition and evaluation disbursements (RM13mil), contingencies (RM8.28mil), administrative expenses (RM4.81mil) and the remaining RM988,000 for management and staff remuneration.