Norway's Sovereign Wealth Fund Invests In Reach Energy

KUALA LUMPUR, July 24 (Bernama) -- Reach Energy Bhd, a special purpose acquisition company (SPAC) enroute to a listing on Bursa Malaysia (Malaysia's Stock Exchange) next month, has confirmed that its cornerstone investors include Norway's Norges Bank Investment Management, the world's largest sovereign wealth fund at US$890 billion. "The involvement of Norges Bank is substantial in many ways. It is experienced in investing in SPACs. "The other investors and Norges Bank have subscribed to more than 200 million shares of Reach Energy's initial public offering (IPO), with the biggest taking up as much as 50 million shares," Chief Executive Officer and Managing Director Shahul Hamid Mohd Ismail added. He told reporters after the launch of the company's IPO prospectus, here Thursday. Shahul Hamid was responding to a question to confirm a report by a news agency on Thursday, that Norges Bank is an investor of Reach Energy. However, he declined to specify the bank's investment amount. Among the other cornerstone investors are Lembaga Tabung Haji (the Malaysian hajj pilgrims fund board), Hong Leong Asset Management Bhd, CIMB-Principal Asset Management Bhd, MTD Capital Bhd and Chua Sai Men, son of Malaysian tycoon Chua Ma Yu, according to the prospectus. Reach Energy aims to raise US$235.76 million (RM750 million) from its listing on Aug 15 by issuing one billion shares together with one free detachable warrant for every one public issue share. Shahul Hamid said of the one billion shares priced at 75 sen each, 980 million shares has been placed out, while the balance of 20 million shares will be made available for balloting by the Malaysian public. Reach Energy will be the fourth Malaysian SPAC to be listed on the local bourse, following Sona Petroleum Bhd, which raised more than RM550 million last year. --BERNAMA