Latest news with #PracticeNote17
New Straits Times
18 hours ago
- Business
- New Straits Times
Pharmaniaga surges on rights issue buzz, trading hits highest in nearly two months
KUALA LUMPUR: Pharmaniaga Bhd soared in heavy trade as investors piled in ahead of a high-stakes rights issue that could reshape the pharmaceutical firm's balance sheet. The counter jumped 22.2 per cent to 16.5 sen by mid-morning, emerging as the second most actively traded stock on Bursa Malaysia, with 17.05 million shares changing hands as at 11.35am. It is Pharmaniaga's busiest trading day in nearly two months, as investors react to the stock's ex-rights pricing. The rally follows the company's move to raise fresh capital through a heavily dilutive rights issue of up to 3.52 billion new shares at 10 sen each, potentially generating up to RM352.15 million in proceeds. The renounceable issue is on the basis of 12 rights shares for every five held, with entitlements fixed at 5pm tomorrow. Rights trading will begin on Thursday, giving shareholders a chance to cash in or double down. Prospectuses and allotment letters are slated for distribution on Friday, while the final day to subscribe or sell the rights is July 17. Pharmaniaga, a Practice Note 17 company, is banking on the fundraising exercise to stabilise its finances after a turbulent year marked by losses and mounting liabilities. At 16.5 sen, Pharmaniaga is valued at about RM237.8 million.
New Straits Times
19 hours ago
- Business
- New Straits Times
Sapura Energy jumps as Bursa clears exit plan
KUALA LUMPUR: Sapura Energy Bhd soared as the most actively traded stock after Bursa Malaysia approved its long-awaited plan to exit financially distressed Practice Note 17 (PN17) status. The counter surged 14.29 per cent to four sen in early trade, with 88.72 million shares changing hands by 10.58am, a sharp revival in interest after nearly no trades were recorded since May 28. The stock earlier touched a morning high of 4.5 sen. At four sen, it commands a market capitalisation of RM643.2 million. The oil and gas contractor started the year at three sen and reached a high of five sen in February, when it secured creditors' approval for a massive debt restructuring plan. The news sparked heavy interest, pushing trading volume to a near two-year high of more than 258 million shares on Feb 27. The latest rally comes as Bursa gave the green light to Sapura's regularisation plan, which includes a capital reduction, major debt workout, fresh fundraising and an exemption from a mandatory general offer. Advised by MIDF Amanah Investment Bank, the plan aims to cut Sapura's borrowings and trade liabilities from RM12.1 billion to RM5.23 billion. It also includes a RM1.1 billion capital injection from the Finance Ministry via Malaysia Development Holding Sdn Bhd (MDH). Once fully converted, the loan stocks will make MDH Sapura's largest shareholder with a stake of over 33 per cent, overtaking Permodalan Nasional Bhd. Bursa's approval, issued on Monday, is subject to shareholder and regulatory approvals, as well as quarterly updates on share issuances linked to the debt instruments. The clearance paves the way for a long-awaited turnaround at Sapura, which has been under PN17 since 2022.
New Straits Times
21 hours ago
- Business
- New Straits Times
Sapura Energy wins Bursa nod for restructuring, targets stronger post-PN17 future
KUALA LUMPUR: Sapura Energy Bhd (SEB) says Bursa Malaysia Securities' approval of its proposed regularisation plan (PRP) clears the path for the company to exit Practice Note 17 (PN17) status and emerge stronger and more resilient. In a statement, SEB said Bursa Malaysia gave the green light via a letter dated June 30, 2025, marking a major milestone in the group's push to restructure its debt, strengthen its balance sheet, and regain full compliance under the Main Market Listing Requirements. The approved PRP includes a comprehensive suite of measures, such as capital reconstruction, debt restructuring, a fundraising exercise, and necessary regulatory exemptions. These steps aim to tackle accumulated losses, reduce total borrowings, and support SEB's turnaround efforts while laying the groundwork for sustainable growth. SEB recorded a net loss of RM477.96 million for the first quarter ended April 30, 2025 (1Q FY2026), reversing a net profit of RM82.13 million in the same period last year. The loss was mainly due to a higher operating loss of RM444.3 million, driven by increased costs associated with ongoing engineering and construction (E&C) projects. Revenue for the quarter fell 31.88 per cent to RM801.37 million from RM1.18 billion a year earlier, largely impacted by challenges in the E&C project in Angola, which resulted in lower contributions from the segment. The decline was also due to reduced activity in the operations and maintenance (O&M) and drilling segments, following the completion of certain projects and seasonal factors. Looking ahead, the group expects its financial performance to improve in the coming quarters, supported by progressive revenue recognition from ongoing E&C work and the commencement of new contracts for several drilling rigs. Sapura Energy said its firm order book of RM7.9 billion provides solid revenue visibility, which is further strengthened by an additional RM4.8 billion, representing its 50 per cent share of the non-consolidated order book held through joint ventures and associates. SEB said the funds raised as part of the PRP will be used primarily to settle outstanding payments to vendors within Malaysia's oil and gas sector, helping to stabilise SEB's supply chain and operational commitments. "We wish to extend our gratitude to Bursa Securities for their approval," said SEB group chief executive officer Muhammad Zamri Jusoh. "This not only validates our regularisation strategy but also paves the way for us to persevering from PN17 stronger and more resilient. We remain committed to executing the regularisation plan responsibly, delivering value to our stakeholders and restoring market confidence in our business." SEB said a general meeting of shareholders will be called soon to secure approval for the PRP. Once endorsed, the company will implement the plan to fully meet Bursa Malaysia's listing requirements. The restructuring is expected to take effect by August 2025 or by the longstop date of March 11, 2026, marking the conclusion of one of Malaysia's largest and most complex corporate restructuring exercises.
The Star
a day ago
- Business
- The Star
Bursa Malaysia approves Sapura Energy's PN17 proposed exit plan after four extensions
KUALA LUMPUR: Bursa Malaysia Securities Bhd has approved Sapura Energy Bhd's proposed regularisation plan to exit its Practice Note 17 (PN17) status, following four deadline extensions. "The proposed regularisation plan comprises a proposed capital reconstruction, proposed debt restructuring, proposed fund-raising and proposed exemption,' Sapura Energy said in a filing with Bursa Malaysia today. ALSO READ: Sapura Energy reports RM478mil 1Q26 loss The oil and gas services outfit fell into PN17 status on May 31, 2022 due to its consolidated shareholders' equity of RM85 million being less than 50 per cent of its share capital of RM10.87 billion as of Jan 31, 2022 (FY2022), and a material uncertainty related to going concern highlighted by the company's auditors in its audited financial statements for FY2022. The company sought its first deadline extension on May 31, 2023, with the latest extension request made on Dec 17, 2024, for a six-month extension until May 31, 2025. For approval, Sapura Energy and its main adviser for the proposed regularisation plan, MIDF Amanah Investment Bank Bhd, must fully comply with the relevant provisions of the Main Market Listing Requirements regarding the implementation of the proposed plan. - Bernama
New Straits Times
a day ago
- Business
- New Straits Times
Bursa Malaysia approves Sapura Energy's PN17 proposed exit plan after four extensions
KUALA LUMPUR: Bursa Malaysia Securities Bhd has approved Sapura Energy Bhd's proposed regularisation plan to exit its Practice Note 17 (PN17) status, following four deadline extensions. "The proposed regularisation plan comprises a proposed capital reconstruction, proposed debt restructuring, proposed fund-raising and proposed exemption," Sapura Energy said in a filing with Bursa Malaysia today. The oil and gas services outfit fell into PN17 status on May 31, 2022 due to its consolidated shareholders' equity of RM85 million being less than 50 per cent of its share capital of RM10.87 billion as of Jan 31, 2022 (FY2022), and a material uncertainty related to going concern highlighted by the company's auditors in its audited financial statements for FY2022. The company sought its first deadline extension on May 31, 2023, with the latest extension request made on Dec 17, 2024, for a six-month extension until May 31, 2025. For approval, Sapura Energy and its main adviser for the proposed regularisation plan, MIDF Amanah Investment Bank Bhd, must fully comply with the relevant provisions of the Main Market Listing Requirements regarding the implementation of the proposed plan.
