BANPU Falls 13% at the Opening Bell over Plans for Capital Increase

The share price of BANPU plunged as much as 12.82% to ฿13.60/share at the opening bell on July 1, 2021, after the announcement of the Board’s decision for a capital increase to accommodate for a potential growth and investment opportunity.

 

The Board of Directors’ Meeting of Banpu Public Company Limited (BANPU) resolved to propose to the Extraordinary General Meeting of the Shareholders to consider and approve the increase of the company’s registered capital of Baht 5,074,581,516 from Baht 5,074,581,515 to Baht 10,149,163,031 by issuing 5,074,581,516 new ordinary shares at Baht 1 par value per share.

 

The newly issued shares will be offered to existing shareholders of the Company in proportion to their respective shareholdings and to accommodate the exercise of the warrants representing the right to purchase ordinary shares of the Company which shall be issued and allocated to existing shareholders who subscribe for and are allocated with the new shares in proportion to their respective shareholdings at no cost.

 

The Board of Directors’ Meeting also resolved to propose to the EGM to consider and approve the issuance and allocation of warrants representing the right to purchase ordinary shares of the Company in the aggregate amount of not exceeding 3,805,936,137 units to the existing shareholders of the Company who subscribe for and are allocated with the New Shares offered to them in proportion to their respective shareholdings with details as follows:

1) The issuance and allocation of warrants representing the right to purchase ordinary shares of the Company No. 4 (Warrants BANPU-W4) in the amount of not exceeding 1,268,645,379units to the existing shareholders of the Company who subscribe for and are allocated with the New Shares offered to them in proportion to their respective shareholdings at the ratio of 1 New Share to 1 unit of Warrants BANPU-W4at no cost (i.e. offering price per unit is Baht 0), and any fraction from the calculation shall be rounded down. The Warrants BANPU-W4 have a term of 1 year from the issuance date and its exercise price is Baht 5 per share.

2) The issuance and allocation of warrants representing the right to purchase ordinary shares of the Company No. 5 (Warrants BANPU-W5) in the amount of not exceeding 1,268,645,379units to the existing shareholders of the Company who subscribe for and are allocated with the New Shares offered to them in proportion to their respective shareholdings at the ratio of 1 New Share to 1 unit of Warrants BANPU-W5at no cost (i.e. offering price per unit is Baht 0), and any fraction from the calculation shall be rounded down. The Warrants BANPU-W5 have a term of 2 years from the issuance date and its exercise price is Baht 7.5 per share.

3) The issuance and allocation of warrants representing the right to purchase ordinary shares of the Company No. 6 (Warrants BANPU-W6) in the amount of not exceeding 1,268,645,379units to the existing shareholders of the Company who subscribe for and are allocated with the New Shares offered to them in proportion to their respective shareholdings at the ratio of 1 New Share to 1 unit of Warrants BANPU-W6at no cost (i.e. offering price per unit is Baht 0), and any fraction from the calculation shall be rounded down. The Warrants BANPU-W6 have a term of 3 years from the issuance date and its exercise price is Baht 7.50 per share.

 

BANPU expected to raise an additional fund of approximately Baht 31,716 million to strive forward firmly in order to achieve sustainable growth in accordance with its strategic goal, therefore management of investment budget and preparation of funding via this capital increase is a crucial factor in accelerating through the transition period and in accommodating potential growth which can rapidly occur once there are suitable investment opportunity.

 

Additionally, the proceeds will help strengthen the company’s financial position in order to ensure that the Company will be able to fulfil its financial covenants, and to provide readiness so that the company will have financial flexibility for implementation of project and investment in the future, as well as to be reserved as reserve funds to be used as working capital for the new projects and/or existing projects and/or for repayment of debts.