GPSC’s EGM Approves a Capital Increase of ฿13.2bn, Offering to RO at ฿56.0/Share

In the Extraordinary General Meeting of Shareholders on August 28, 2019 of Global Power Synergy Public Company Limited (GPSC), the meeting had passed the resolution to approve the increase in GPSC’s registered capital of 13,214,285,710 baht from the existing registered capital of 14,983,008,000 to 28,197,293,710 by issuing 1,321,428,571 newly-issued ordinary shares with the par value of ฿10.00/share.

The capital increase is to accommodate the allocation of newly-issued ordinary shares to the existing shareholders in proportion to their respective shareholdings (Rights Offering or RO), whereby the existing shareholders are able to oversubscribe for the newly-issued ordinary shares in excess of their rights, at the rate of 1 existing ordinary share to 0.8819 newly-issued ordinary share at the offering price of ฿56.0/share. In the case of a fraction of a share, the fraction shall be rounded down.

GPSC expected a total of 74 billion baht if the newly-issued ordinary shares are all subscribed by the RO. The company will use the funds from this capital increase as a bridge financing to institutions and major shareholders such as PTT Public Company Limited (PTT) and PTT Global Chemical Public Company Limited (PTTGC) for the amount that the company used to purchase Glow Energy Public Company Limited (GLOW). Moreover, the capital increase was in order to stabilize the company’s finances to be inline with other companies in the same industry as well as using as a funding for future projects.