Malaysian offshore fabricator TH Heavy Engineering (THHE) plans to use half of the MYR300m ($83.5m) to be raised from its proposed rights issue to convert its FPSO vessel, with the remainder to be used for other capital expenditure needs.

TH Heavy said MYR152m from the MYR300m proceeds would partly finance the conversion of its FPSO Layang after it secured a contract from JX Nippon. Another MYR13.2m would be used to upgrade its Pulau Indah fabrication yard. Works include boosting yard capacity, upgrading and construction of additional facilities and purchase of additional fabrication equipment and tools.

Another MYR4.5m would be used to invest in tools, machinery, software and purchase/manufacture of cranes for rental.

The group added MYR50m of the proceeds would be used to lower its debt from MYR346.3m now.

TH Heavy said about MYR50m to MYR75.3m would be used as working capital and the remaining MYR4m would be used to defray estimated expenses of the issue.