Thai Airways trims early losses as rights issue pricing comes in below expectation
Thai Airways has priced its rights issue at THB31 apiece, slightly below market expectations of THB34-35 per share. The carrier aims to raise THB15 billion (USD486 million) to help fund fleet renewal and expansion plans.
- Thai Airways prices its rights issue below market expectations at THB31 per share.
- The carrier aims to raise THB15 billion to fund fleet renewal and expansion plans.
- Thai Airways will offer shares to the Ministry of Finance, existing shareholders, and retail investors.
- The stock initially dipped but closed down only 0.7%.
- Thai Airways aims to become one of the top three Asian airlines and be in the world's top five.
- The rights issue will reduce Thai Airways' debt to equity ratio and the subscription period is set for 16/17-Sep-2010.
Thai will offer 483.89 million shares (including 246.93 million to the Ministry of Finance), as well as 221.8 million shares to other existing shareholders and 15.1 million to retail investors.
The stock dipped as much as 7% in early trade, but closed down just 0.7%
Thai Airways chairman, Ampon Kittiampon, stated: "The price of the new shares is appropriate, in line with investor demand and current market conditions. Our aim is to make Thai Air one of the three leading Asian airlines and be in the world's top five soon." He added, "We expect that the shares will be fully subscribed … Our roadshow got a positive response."
The move will reduce Thai Airways' debt to equity ratio from 2.17 times at 30-Jun-2010 to roughly 1.7. The subscription period is 16/17-Sep-2010, with a final announcement on the allocation due by 22-Sep-2010.
Elsewhere in the region, China Airlines advanced 4.2% on Wednesday, while China Southern and China Eastern extended Tuesday's gains.
Asia Pacific selected airlines daily share price movements (% change): 15-Sep-2010
Source: Centre for Asia Pacific Aviation, Reuters & Financial Times