THAI’s 70% share lock-up expiry puts focus on market supply

THAI to release 19.8bn locked-up shares

Thai Airways International has notified the Stock Exchange of Thailand that more than 19.8 billion shares, or 70% of all issued shares, will be released from selling restrictions after August 3, 2026, raising market attention over potential share supply after the airline’s return to trading.

Chai Eamsiri, chief executive officer of Thai Airways International Plc, said the company had completed its debt-to-equity conversion and new ordinary share offering under its business rehabilitation plan.

The key market issue now is not an immediate sale of shares, but the removal of restrictions that would allow a large block of shares to become tradable.

Lock-up expiry could create share overhang

The shares to be released are covered by two restrictions: the Creditors’ Lock-up, which applies to shares allocated to creditors through debt-to-equity conversion, and the SET’s Silent Period, which applies to shares held by management participants or strategic shareholders.

THAI’s information memorandum showed that a total of 26.4 billion shares, or 93.3% of paid-up capital, were subject to trading restrictions. Of these, 6.6 billion shares, or 23.3%, became eligible for sale after six months, while the remaining 19.8 billion shares, or 70%, become eligible after one year from the date THAI resumed trading on the SET.

Creditors’ shares make up major portion

Under the Creditors’ Lock-up, creditors who received THAI shares through debt-to-equity conversion were barred from selling those shares during the period set by the plan administrators.

The first certificate, covering 25% of the shares allocated to each creditor, completed its lock-up period on February 3, 2026. The second certificate, covering the remaining 75%, will be released after August 3, 2026.

The restriction was designed to support the airline’s capital restructuring and help stabilise THAI’s share price after the stock returned to the market.

Silent Period also ends for remaining shares

Separately, THAI imposed a selling restriction on shares held by management participants to comply with SET rules for the company’s return to trading.

These shares, representing 55% of paid-up capital, were deposited in scripless form in the issuer account with Thailand Securities Depository. A first portion equal to 25% of the restricted shares already completed its lock-up period on February 3, while the remaining 75% will complete the lock-up after August 3.

Together, the Creditors’ Lock-up and Silent Period account for the 19,802,574,214 shares set to be released from restrictions.

THAI exits rehabilitation after restructuring

THAI’s return to market followed a major restructuring process triggered by the Covid-19 crisis. The airline entered bankruptcy-protected restructuring in 2020 after years of losses and a heavy debt burden. The restructuring involved debt worth about 400 billion baht, alongside workforce reductions and fleet cuts.

The Central Bankruptcy Court ordered the termination of THAI’s business rehabilitation on June 16, 2025, and THAI announced that its shares would resume trading on the SET on August 4, 2025. The company said the successful completion of the rehabilitation plan had transformed the airline into a private entity and restored investor confidence.

As part of the turnaround, THAI said it converted 53.45 billion baht of deferred creditor debt and interest into equity and raised 22.99 billion baht through a new share offering in 2024. The airline also said shareholders’ equity had turned positive, improving from negative 43.14 billion baht at the end of 2020 to positive 55.44 billion baht as of March 31, 2025.

Investors watch liquidity and selling pressure

The expiry of the lock-up does not require creditors or management participants to sell their shares. However, the release of such a large volume of stock could affect market sentiment, liquidity and price expectations.

For investors, the key question is whether major holders will continue to hold THAI shares after the lock-up ends, or whether some will use the expiry as an opportunity to reduce positions following the airline’s post-rehabilitation recovery.