RATCH Extends to 2-Day Losing Streak over Dilution Effect from Capital Increase

The share price of Ratch Group Public Company Limited (RATCH) continued to slip, following yesterday’s 9.18% plummet after the announcement of a capital increase of 769,230,770 shares at par value of 10 baht each, totaling 7,692,307,700 baht.

 

RATCH closed the morning session on June 24, 2021, at 45.50/share, decreased 1.50/share or 3.19% with a trading value of 1,133 million baht.

 

Capital Nomura Securities (CNS) had a short-term negative view on the capital increase due to the dilution effect (control dilution around -35% and price dilution around 8%, while EPS dilution depends on the earnings of Paiton), but positive in the long run over the investment in large-sized power plants. In addition, CNS reiterated “BUY” rating with a target price at ฿67.00/share.