This exercise is the technology company’s first private placement since 2021, during which it secured RM163.61 million by offering 30% of its issued share capital. That was a move coinciding with DNeX’s entry into SilTerra Malaysia Sdn Bhd, a semiconductor wafer foundry.
In a filing with Bursa Malaysia, DNeX said the latest fundraising aims to support the development of the Fyne Field in the UK’s North Sea, the Meranti Cluster off Terengganu, and the A Cluster near Miri, Sarawak.
The private placement will involve the issuance of a maximum of 315.63 million shares, equivalent to 10% of its total outstanding shares, which amount to 3.15 billion.
In 2021, it increased its ownership in Ping Petroleum Ltd to 90% from 30%, at a cost of US$78 million (then RM314 million). Ping Petroleum is an independent upstream company, focused on shallow water offshore production and development in Southeast Asia and the North Sea.
This year, DNeX entered into two production sharing contracts with Petronas for its Malaysian assets, securing a 60% stake in the Meranti Cluster and a 70% ownership in the A Cluster.
To provide clarity, the proposed issue price for the placement share is at 41.5 sen each, a discount of roughly 9.98% when compared to the shares’ five-day volume weighted average price (VWAP), leading up to and encompassing the last trading day (LPD), which amounted to 46.1 sen per share.
However, the exercise will not be available to directors, major shareholders, or chief executives of DNeX or its parent company, individuals affiliated with interested parties, or nominee corporations.
The capital raised will be allocated towards strategic acquisitions and partnerships within the oil and gas sector, with a specific focus on both upstream and downstream activities.
The company noted that this sector accounted for 27% of its 2022 total revenue, amounting to RM399.9 million out of a total of RM1.46 billion.
In the first half of 2023 (H1 FY2023), DNeX recorded a significant reduction in its loans and borrowings, which dropped to RM43.79 million from RM86.58 million in H1 FY2022.
Furthermore, the company’s cash and cash equivalents amounted to RM417.43 million, reflecting a 44% decrease compared to the RM754.52 million reported a year ago.
The company’s largest shareholder is Mohd Isa Ismail, holding an indirect stake of 14.42%, with Foxconn Technology Group closely following with a 3.8% ownership through Foxconn Singapore Pte Ltd.
DNeX is a global technology company operating in three business divisions namely technology, energy, and information technology.
Its shares closed 1.5 sen or 3.3% lower at 43.5 sen, valuing the company at RM1.37 billion.