Yinson Production has entered into a definitive agreement with a consortium of global investment firms to raise pre-IPO growth capital of $1 billion to support further growth.
The $1 billion pre-IPO consists of redeemable convertible preferred shares and 10% warrants, with the option to upsize to $1.5 billion within 24 months.
The transaction is expected to close in the first quarter of 2025, subject to customary closing conditions.
The proceeds from the transaction will primarily support Yinson Production’s expansion, while $200 million will be used for distribution to the controlling shareholder, a wholly owned subsidiary of Yinson Holdings Berhad.
The investment consortium comprises Platinum Lily B 2024 RSC, a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA), and funds managed by British Columbia Investment Management Corporation (BCI), and RRJ Group.
“We are delighted to welcome ADIA, BCI and RRJ as new investors in Yinson Production. This is one of the largest structured equity transactions in Southeast Asia and the first platform-level equity raise by Yinson Production.
“It builds upon Yinson Production’s proven track record of delivering value accretive growth through our integrated platform. The growth capital will further strengthen our leading market position and enables us to seize opportunities in a robust FPSO market environment,” said Flemming Grønnegaard, Chief Executive Officer of Yinson Production.