Sapura Energy jumps as Bursa clears exit plan

New Straits Times

01-07-2025

KUALA LUMPUR: Sapura Energy Bhd soared as the most actively traded stock after Bursa Malaysia approved its long-awaited plan to exit financially distressed Practice Note 17 (PN17) status.
The counter surged 14.29 per cent to four sen in early trade, with 88.72 million shares changing hands by 10.58am, a sharp revival in interest after nearly no trades were recorded since May 28.
The stock earlier touched a morning high of 4.5 sen. At four sen, it commands a market capitalisation of RM643.2 million.
The oil and gas contractor started the year at three sen and reached a high of five sen in February, when it secured creditors' approval for a massive debt restructuring plan.
The news sparked heavy interest, pushing trading volume to a near two-year high of more than 258 million shares on Feb 27.
The latest rally comes as Bursa gave the green light to Sapura's regularisation plan, which includes a capital reduction, major debt workout, fresh fundraising and an exemption from a mandatory general offer.
Advised by MIDF Amanah Investment Bank, the plan aims to cut Sapura's borrowings and trade liabilities from RM12.1 billion to RM5.23 billion. It also includes a RM1.1 billion capital injection from the Finance Ministry via Malaysia Development Holding Sdn Bhd (MDH).
Once fully converted, the loan stocks will make MDH Sapura's largest shareholder with a stake of over 33 per cent, overtaking Permodalan Nasional Bhd.
Bursa's approval, issued on Monday, is subject to shareholder and regulatory approvals, as well as quarterly updates on share issuances linked to the debt instruments.
The clearance paves the way for a long-awaited turnaround at Sapura, which has been under PN17 since 2022.