KTBST Expects MAKRO at Least THB50 after the Profit Taking from New Additional Shares

The share price of Makro plunged 5.02% to ฿42.50/share as of 11:37 local time in Thailand on December 24, 2021, the first day new shares of MAKRO from the capital increase were added in the Thai stock market after being offered through Rights Offering (RO) at a price of Bt43.50 per share, totaling 770 million shares.

KTBST Securities (KTBST) expected a 1-2 day of profit taking in MAKRO due to the price of offered shares being lower than the closing price on the day prior was more than Bt44 per share. The securities company noted that after the selling pressure was gone, the share price of MAKRO should reflect its fundamentals and value to not less than Bt50 per share.

In addition, the increase in shares will also increase MAKRO’s free float by 13-14% due to the offering shares not fully subscribed. KTBST expected free float should not reach 16-17%, which should not meet the criteria to enter SET50 and SET100. However, the securities company stated that the market should wait for an official report from the Stock Exchange of Thailand in upcoming days.