Kula Lumpur: Malaysian offshore service provider TH Heavy Engineering is planning to use RM152m ($42.4m) from RM300m to be raised from its proposed rights issue for the conversion of an FPSO.
TH Heavy Engineering said on Wednesday in its circular to shareholders that it would raise RM300m ($83.6m) via the rights issue of up to 1.2bn Islamic irredeemable convertible preference shares.
RM152m will be used for the conversion of its FPSO Layang after it secured a contract from JX Nippon. Another RM13.2m would be used to upgrade its Pulau Indah fabrication yard. RM50m of the proceeds would be used to lower its debt, while about RM50m to RM75.3m will be used to replenish working capital.
