KUALA LUMPUR (March 21): Energy services firm T7 Global Bhd is planning to raise up to RM41.56 million via a private placement of a maximum of 90.5 million shares or 10% of its enlarged share base. 

In an announcement to Bursa Malaysia, the group said the proceeds to be raised will go mainly towards funding work capital for the contracts awarded by Carigali Hess Operating Company Sdn Bhd as well as Hibiscus Oil & Gas Malaysia Ltd to its wholly-owned unit Tanjung Offshore Services Sdn Bhd. 

For illustrative purposes, the issue price is assumed at 45.92 sen, a 10% discount to the five-day volume-weighted average price of T7 Global shares up to March 8 of 51.02 sen.

T7 Global reasoned that private placement is the most appropriate avenue of fundraising at this juncture to address its financing needs. 

Currently, T7 Global has an outstanding order book of approximately RM2.4 billion mainly contributed by its energy division. “At present, it is the intention of the board to focus on executing the group's existing contracts while actively seeking new opportunities within industries where the group has proven expertise and experience.”

T7 Global has not undertaken any fund-raising exercises in the past 12 months. 

Barring any unforeseen circumstances, the proposed private placement is expected to be completed by the second quarter of 2024.

Shares of T7 Global closed up half a sen or 0.94% at 53.5 sen at Thursday’s noon break, giving it a market value of RM402.26 million. The counter has risen over 24% year-to-date and 40% in the past 12 months.