BANPU Falls 26% Prior to the Record Date for 3:1 Capital Increase and 2 Warrants

The share price of Banpu Public Company Limited (BANPU) dropped ฿3.60/share or 26.67% to ฿9.90/share with a trading value of 2,493 million baht on the Excluding Right date for its capital increase.

 

The Extraordinary General Meeting of the Shareholders No. 1/2021 BANPU held on 9 August 2021 has passed the resolutions approving the allocation of newly issued ordinary shares in the amount of not exceeding 1,691,527,171 shares with Baht 1.00 par value per share to the existing shareholders of the company in proportion to their respective shareholdings at the ratio of 3 existing ordinary shares to 1 newly issued ordinary share at the offering price of Baht 5 per share.

The existing shareholders shall be entitled to subscribe for the new shares in excess of their entitlements pursuant to the given ratio (oversubscription), provided that the existing shareholders who express their interests to subscribe for the new shares in excess of their entitlements shall be allocated with the oversubscribed new shares only if there remains unsubscribed shares from the allocation, together with the issuance and allocation of the (i) warrants representing the right to purchase ordinary shares of Banpu Public Company Limited No.4 (BANPU-W4) (Warrants BANPU-W4) in the amount not exceeding 1,691,527,171 units.

BANPU-W4 will be allocated to the existing shareholders of the company who subscribe for and are allocated with newly issued ordinary shares offered to them in proportion to their respective shareholdings at the ratio of 1 newly issued ordinary share to 1 unit of Warrants BANPU-W4 at no cost (i.e. offering price per unit is Baht 0) and its exercise price is Baht 5.00 per share; and (ii) warrants representing the right to purchase ordinary shares of Banpu Public Company Limited No.5 (BANPU-W5) (Warrants BANPU-W5) in the amount not exceeding 1,691,527,171 units to the existing shareholders of the company who subscribe for and are allocated with newly ordinary shares offered to them in proportion to their respective shareholdings at the ratio of 1 newly issued ordinary share to 1 unit of Warrants BANPU-W5 at no cost (i.e. offering price per unit is Baht 0) and its exercise price is Baht 7.50 per share.

 

In this regard, the Company has fixed the date for determination of the shareholders who are eligible to subscribe the newly issued ordinary shares on 17 August 2021 (Record Date), and the subscription and payment period for the newly issued ordinary shares allotted and offered to the existing shareholders in proportion to their respective shareholdings shall be 6 to 17 September 2021 (totaling 10 business days).

 

As for the analytic review, UOB Kay Hian Securities (Thailand) was neutral on this news as the new issuance shares remain the same. However, BANPU’s share dilution effect for right offering this year to be around 33.3% from 25% previously and cash received to increase to around Bt8.5b from Bt6.3b for 2021-22 and increase to Bt12.7b from Bt9.5b in 2023. UOBKH believed BANPU’s financial plan to imply the upcoming M&A in the pipeline to be earlier than its expectations.