Banpu to raise Bt13bn
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Banpu's shareholders at the April 19 meeting would be asked to approve the company's rights offering as well as warrants, in its efforts to raise Bt12.9 billion.
If all new shares are fully subscribed and all warrants are fully exercised, the company said it would raise Bt12.9 billion, enough to retire partial loans and reduce interest expense by approximately Bt500 million. That would reduce the debt-to-equity ratio (D/E Ratio) from 1.62 to 1.23 and increase the company's financial flexibility and access to funding when investment opportunities arise in the future.
"This will enable all the existing shareholders to participate as it is an opportunity to generate an attractive return on the long-term investment," said Somruedee Chaimongkol, chief executive officer of Banpu.
Banpu is set to issue 1.29 billion shares in the rights offering. At Bt1 par value, the shares would be offered at Bt5 apiece. Meanwhile, 1.29 billion shares would be issued to accommodate the exercise of warrants which would be issued at no cost to the existing shareholders.
The company posted Bt1.53 billion in net loss last year, the first loss in years. Yet, it plans to pay Bt1 a share as dividend for the 2015 operating year.
It also maintains the plan to list a subsidiary, Banpu Power.
“Our filing process for the IPO of Banpu Power, or BPP, is on track as planned. Currently the filing documents are under the consideration and approval by the SEC. We will monitor market conditions to determine the optimal timing for launching the IPO,” Somruedee said.
