SPAC ni company yg tiada track record lagi on business operation. cth yg ada sblm ni mcm Hibiscus, cliq, sona.
Main features of this IPO?
- 94.75 per cent or RM710.62 million of the IPO proceeds will be placed in Islamic trust account namely Amanah Trustees. The remaining 5.25% will be used for operating expenses.
- The warrants are tradable on listing date with an expiry date of 8 years after listing. The expiry date only 3 years if no Qualifying Acquisition made within 3 years.
- The completion of the Qualifying Acquisition (QA) is within 3 years from the date of listing. If it fails to complete a QA within this time frame, the company will be liquidated and the amount held in trust account will be distributed to shareholders.
- Reach Energy has locked in up to seven cornerstones namely pilgrim fund Lembaga Tabung Haji, CIMB Principal Asset Management, Hong Leong Asset Management and Malaysia’s infrastructure firm MTD Capital. However, the cornerstone investors are not subjected to a lock-up period.
- The SPAC, led by Shahul Hamid Mohd Ismail who has 34 years of experience in the Oil & Gas Industry. He held many senior E&P roles in Esso, Shell and PDO.
- The rest of Reach Energy management team have vast experience and relevant skills, who comes from SapuraCrest Petroleum, Petronas and Schlumberger
- Reach Energy shares are Shariah-Compliant.