NOK’s Boards Approve a Capital Increase of 888m Shares for RO to Reinforce Its Operation

Nok Airlines Public Company Limited (NOK) has announced its Board of Directors’ decision from yesterday’s meeting to approve the decrease of registered capital of THB 99,030,527 from the existing registered capital of THB 3,408,049,800 to THB 3,309,019,273, then approved the increase of registered capital of THB 888,147,358 from the existing registered capital of THB 3,309,019,273 to THB 4,197,166,631 at the par value of ฿1.00/share.

The Board of Directors also resolved to propose to the Extraordinary General Meeting of Shareholders No. 1/2020 to consider approving the allocation of the newly issued ordinary shares of NOK up to 888,147,358 shares at the par value of ฿1.00/share to existing shareholders of NOK proportionate to their respective shareholdings (Rights Offering) with the allocation ratio of 3.5 existing shares to 1 newly issued ordinary share, at the offering price at ฿2.50/share. Total value did not exceed THB 2,220,368,395. The offering period is determined to be from 3 to 7 February 2020 (totaling 5 business days).

 

NOK’s purpose of the capital increase is to reinforce the company in the part of operation and capital. NOK has planned to utilize proceeds received from the capital increase for working capital, reducing indebtedness, improving fleet, including expanding air routes and aviation network which will enhance its capability in competition and result in better performance.

NOK asserted that in the past, the company has had loss from operation. Some of the proceeds received from this capital increase will be utilized as working capital for business operation, increase liquidity and reinforce financial position.

Moreover, the company has planned to invest in the expansion of air routes which NOK has observed and foresaw the opportunity to enhance aviation network, airplane using ratio and operation efficiency in order to raise NOK’s revenue and profit ratio in the long run.

Lastly, NOK has planned to improve fleet in order to increase airplane using ratio per airplane and reduce expense per unit, for instance, airplane rental, maintenance expenses and airmen expenses etc., causing the company to have better performance and profitability.