Nok Air says almost 82% of its new share offering was taken up despite THAI’s refusal to exercise shareholder rights
Nok Air confirmed yesterday that almost 82% of its new share offering was taken up despite the refusal of Thai Airways International (THAI) to exercise its subscription rights.
The loss-ridden budget airline saw 511 million shares, or 81.8% of the total 625 million shares being offered during May 16-22, subscribed to and paid for by existing shareholders, minus the flag carrier.
Nok Air has thus raised 1.22 billion baht in fresh capital, which is sufficient to meet its funding requirement without having to sell the remaining 114 million shares in this allotment, Nok Air executives told the Bangkok Post.
The confirmation of share sales, for which the Stock Exchange of Thailand was notified, represented the passage of a major hurdle for Nok Air’s business turnaround plan.
Company executives said the results reflected the trust and confidence in the airline among shareholders.
But the airline did not divulge details of those who subscribed to the new shares, though executives confirmed that all existing major shareholders, except THAI, opted for them.
Major shareholders, including businessmen Nuttapol and Thaweechat Jurangkool, Siam Commercial Bank and Nok Air chief executive Patee Sarasin, took their shares in the offering, the executives said.
The 625 million shares were allocated to existing shareholders at 2.40 baht each, with a ratio of one new issue per one existing share held.
THAI had overturned its earlier decision to take up the share subscription offering, numbering 245 million, at the eleventh hour, just ahead of a May 22 deadline.
The flag carrier cited Nok Air’s “unclear” business turnaround plan and the likelihood of its subscription payment of 588 million baht contributing to THAI’s financial woes. Sources also said the company sought to replace Mr Patee.
Nok Air earlier said it wanted to issue 781.6 million new ordinary shares, with 625 million being allocated to existing shareholders.