PETALING JAYA: Hibiscus Petroleum Bhd is considering listing a special purpose acquisition company (SPAC) in Singapore that could raise as much as S$200mil (RM620.20mil), Bloomberg has reported, citing people familiar with the matter.
The Malaysian independent oil and gas (O&G) explorer has held talks with potential advisers on the potential SPAC initial public offering, said the people, who asked not to be identified as the information was confidential, according to the newswire.
It noted that the blank-cheque company, which could raise S$150mil (RM465.10mil) to S$200mil (RM620.20mil), would look for acquisition targets in the renewable energy sector, the people said.
Discussions are at an early stage and the company could decide not to proceed with the plan, the people said.
“As part of this long-term energy transition strategy, we are looking at all forms of funding structures,” a representative for Hibiscus said in response to Bloomberg News’ queries, adding that no decision had been made.
The company declined to comment on a SPAC listing plan.
Hibiscus itself was the first SPAC to be listed on the Malaysian bourse in July 2011. It became an O&G exploration firm a year later after acquiring a 35% stake in Lime Petroleum Plc, whose assets included concessions in the Middle East.
The company has since grown its portfolio to include energy assets in Australia, Malaysia, the United Kingdom and Vietnam, according to its website.
Meanwhile, Hibiscus could see a major profit boost this year thanks to prolonged high crude oil prices, according to TA Research, which expects the company to report “a bumper earnings year” for its financial year 2022 (FY22) based on the current crude oil prices.
“Moreover, the bottom-line growth will be compounded by maiden five-months contribution from Repsol assets. The latter will result in net production growth of 75% year-on-year (y-o-y),” it said in a report yesterday.
Brent crude oil price was last traded at US$104.64 per barrel (RM442.57).
In January, Hibiscus completed its acquisition of Spanish energy major Repsol Exploración, SA’s upstream assets in Malaysia and Vietnam for US$212.50mil (RM890.06mil).
The asset portfolio comprises interests and operatorship under five production sharing contracts in Malaysia and Vietnam.
Hibiscus already has producing assets in the UK and Malaysia, and assets in Australia at a development stage, according to its website.
“We project a net profit growth of more than two times for FY22 estimates, mainly due to the higher oil price assumption of US$105 (RM444.20) per barrel compared to US$50 (RM211.53) per barrel in FY21 and the higher forecast average net production of 15,670 barrels per day from 8,960 barrels per day in FY20, mainly driven by a five-month consolidation of Repsol’s assets,” TA Research said.
“Meanwhile, our FY23 forecast growth of 32% y-o-y is underpinned by moderation in the realised oil price to US$80 (RM338.44) per barrel and increasing net production of 23,889 barrels per day anchored by full-year contribution from the Repsol assets,” it added.