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Reach Energy's new shares for public oversubscribed
August 7, 2014 / 10:46 AM / 3 years ago

Reach Energy's new shares for public oversubscribed

KUALA LUMPUR, Aug 7 (Reuters) - The new share offering to the public under the $236 million listing of Malaysia’s Reach Energy Bhd, a special purpose acquisition company (SPAC) with no existing assets, has been oversubscribed by 41.86 times, the company said on Thursday.

The public offer comprises 20 million units of one share and one warrant at 75 sen per share. The company sold 980 million shares at the same price to institutional and cornerstone investors in early July.

The IPO could mark Malaysia’s largest listing by a shell company with no assets. A SPAC is set up with the intention of buying firms that will be later folded into the business.

The SPAC, led by Shahul Hamid Mohd Ismail who used to head Malaysia-listed Shell Refining Company Bhd, is looking to buy firms involved in Asia’s oil and gas exploration and production sector, according to its prospectus.

Reach Energy is scheduled to be listed on Aug. 15.

Hong Leong Investment Bank is the principal adviser, placement agent and underwriter. (Reporting by Yantoultra Ngui; Editing by Mark Potter)

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