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All eyes on Sapura Energy's next step post-rights issue

Chester Tay
Chester Tay9/3/2018 07:30 AM GMT+08  • 5 min read
All eyes on Sapura Energy's next step post-rights issue
SINGAPORE (Sept 3): Sapura Energy lost RM1.08 billion ($358.6 million) in market capitalisation in the afternoon session on Aug 24 when its share price plunged to a record low after the group announced plans to raise up to RM4 billion via a deeply discoun
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SINGAPORE (Sept 3): Sapura Energy lost RM1.08 billion ($358.6 million) in market capitalisation in the afternoon session on Aug 24 when its share price plunged to a record low after the group announced plans to raise up to RM4 billion via a deeply discounted rights issue to pare its debt and strengthen its core position for future growth.

While investors are well aware that its balance sheet needs rejuvenating, the heavy selldown may have been partly due to expectations that the fundraising would be done via the listing of its exploration and production (E&P) business rather than the announced cash call.

The stock price plunged as much as 37.8% to 37 sen intraday on Aug 24 before closing at 41.5 sen — still 30.25% below the previous day’s close of 59.5 sen and 41.6% lower year to date.

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