Malaysian Digest Business Online - Poor Debut For Reach Energy

KUALA LUMPUR: Reach Energy Bhd, a special purpose acquisition company (SPAC), dropped on its first day of trade at Bursa Malaysia after completing the country’s largest initial public offering (IPO) by a shell company with no existing assets.

Shares of Reach Energy, set up by veterans in the Malaysian energy industry, fell 5.3% to 71 sen, down from its offer price of 75 sen per share. The stock dropped as much as 8% to 69 sen.

The RM750 million IPO exceeds those of similar local SPACs such as Sona Petroleum Bhd and Cliq Energy Bhd, which raised between US$100 million (RM319 million) and US$150 million last year.

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1. Poor Debut For Reach Energy