JKN Global Group Public Company Limited (SET: JKN) is on the brink of losing investors’ and shareholders’ interests after its share price briefly reached the same level of the offering price of the newly issued ordinary shares to the existing shareholders of the company.
The share price of JKN is trading at THB3.02 per share, representing a decline of THB 0.06 or 1.95% in the afternoon session on Friday. The price briefly hit THB 3.00 per share in the morning session.
Late January, JKN announced an amendment of its capital increase plan, as the Board of Directors 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 at a price of THB 3.00 per 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 at an offering price of THB 4.50 per share.
The offering period is expected to be on 22 March 2023 and last until 14 June 2023.
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, JKN stated that the company has been contacted by the investors in investing in the company which 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.