KUCHING: A Dayang Enterprise Holdings Bhd (Dayang) unit has won a new contract for the maintenance of offshore structure from Petronas Carigali Sdn Bhd. Wholly-owned subsidiary Dayang Enterprise Sdn Bhd (DESB) was awarded the contract for the provision of hook-up, commissioning and topside major maintenance services — Peninsular (Non-ANGSI and OGT, OSC & TGAST related works).
The duration of the contract is for a period of 15 months, effective from Aug 16, 2019 and shall expire on Nov 15, 2020, Dayang said in a filing with Bursa Malaysia.
The value for the contract is not stated.
Before winning this latest contract, Dayang has a sizable order book of about RM2.8 billion, albeit on call-out contracts.
“The contract has no effect on the issued and paid-up capital of the company, and is expected to contribute positively to the earnings of Dayang over the duration of the contract,” said the company.
In May this year, DESB secured another contract from Roc Oil (Sarawak) Sdn Bhd for the provision of procurement, construction, installation, hook-up and commissioning services for Roc Oil Spirod/infill drilling campaign (2019-2023).
The value of the contract is based on work orders to be issued by Roc. Meanwhile, Dayang has received approval from Bursa Securities last week on its proposed rights issue and private placement that could potentially raise up to some RM187.2 million.
Dayang has proposed to undertake a renounceable rights issue of up to 96.48 million new ordinary shares on the basis of one rights share for every 10 shares held at an entitlement date to be determined later. The company has also proposed the private placement of up to 96.48 million new shares, representing about 10 percent of Dayang’s total number of issued shares.
Bursa has approved the listing and quotation of the new ordinary shares to be issued under the rights issue and private placement exercises. Based on illustrative rights issue price of 80 sen per rights share, the proposed rights issue is expected to raise gross proceeds of about RM77.18 million.
Dayang has procured irrevocable and unconditional undertakings from its major shareholders to subscribe some 49.78 million new rights shares or 51.59 percent.
These shareholders include Naim Holdings Bhd, the single largest Dayang shareholder with stake of 26.42 percent. Others are Datuk Ling Suk Kiong, Joe Ling Siew Loung @
Lin Shou Long, Datin Wong Siew Hong, Vogue Empire Sdn Bhd, Datuk Hasmi Hasnan and Tengku Datuk Yusof Tengku Ahmad Shahruddin. The private placement is expected to raise up to RM109.99 million based on an illustrative issue price of RM1.14 apiece. Dayang shares closed at RM1.36 on Tuesday.
From the proceeds of the rights issue, Dayang intends to utilise RM70 million to repay borrowings and RM4.68 million as working capital. The balance of RM2.5 million is to pay for the estimated expenses for the fund raising exercise.
The bulk of the proceeds or RM75 million from the private placement would be utilised for the build-up of sinking fund for Dayang’s proposed sukuk programme, RM15 million for capital expenditure, RM17.49 million for working capital and RM2.5 million for expenses of the exercise. Dayang expects to complete the rights issue and private placement exercises in fourth quarter 2019 (Q4-2019).
