JKN Cuts Capital Increase Plan by Half to Allocate for Private Placement

JKN Global Group Public Company Limited (SET: JKN) announced on Tuesday regarding the adjustment on the allocation of offered shares from the increasing of the registered capital by cancelling the previous resolution on January 5, 2023, and cutting the resolutions of increasing capital by half.

The Board of Directors approved to propose to the shareholders’ meeting to consider and approve the increase of the registered capital of the company in the amount of 294,648,761.50 Baht from the original registered capital of 509,831,363.00 Baht to the registered capital of 804,480,124.50 Baht by issuing 589,297,523 new ordinary shares at a par value of 0.50 Baht.

The company proposed to adjust the allocation ratio of the newly issued shares not exceeding 510,043,387 shares to the existing shareholders proportionate to their respective shareholding (Rights Offering) from the allocation ratio of 1 ordinary share per 1 newly issued ordinary share to be 2 ordinary share per 1 newly issued ordinary share in order to minimize the dilution effect.

The company would allocate newly issued ordinary shares of not exceeding 66,666,666 shares by way of private placement to Unistretch Limited, which is not a connected person of the company.


Additionally, JKN would allocate newly issued ordinary shares of not exceeding 12,587,470 shares including the remaining shares and overallotment shares from the allocation to the existing shareholders of the company in proportion to the number of shares held by each individual (Rights Offering) to accommodate the adjustment of rights of the Convertible Debentures issued to NHTPE.

The record date to determine the list of shareholders entitled to attend shareholders’ meeting shall be on February 17, 2023. The company also scheduled the Extraordinary General Meeting of Shareholders No. 1/2023 to be held on March 14, 2023 at 2.30 p.m. via electronic meeting (E-Meeting).


Initially, JKN planned to propose a capital increase of 1,019,917,296 shares at a par value of THB0.50 and a ratio of 1 ordinary share per 1 newly issued ordinary share in which 1,019,790,011 shares would be allocated through right offering.


JKN noted that the reason for revising the size down is due to it receiving a positive response after hosting the Miss Universe 2022 competition in New Orleans both in terms of the number of viewers worldwide and the number of business partners contacted. Specifically, the company has signed a contract with El Salvador to host the Miss Universe for the honor of hosting the Miss Universe pageant in 2023. The host country for the 2024-2025 competition is awaiting contract signing.

As such, the company have been contacted from the investors in investing in the company which the company intends to issue new ordinary shares to such investors for sale to a specific person (Private Placement). As a result, the company will have sufficient liquidity and cash flow to support loan repayment and business expansion.