The share price of JKN Global Group Public Company Limited (SET: JKN) fell 4% in the morning session on Friday amid speculation that the fund manager is selling stakes after exercising convertible debentures at a conversion ratio than the trading price.
Advance Opportunities Fund (AO Fund) is expected to exercise its convertible debentures 5,000 shares to 1,876,876 common shares at a ratio of 1 convertible security to 375.3753 shares at a conversion ratio of 2.664 baht per share, which is lower than the closing price of 2.92 baht on Thursday.
The reason that led to speculation of AO Fund selling JKN traced back to an interview of Mr. Jakkaphong Jakrajutatip, Chief Executive Officer of JKN, with “Kaohoon Jor Talad” program, saying that the company has never paid interest fees, which led to an understanding that AO Fund should sell its converted shares to take profit, considering almost a 10% upside that the fund manager could have booked.
JKN’s share prices closed the morning session on Friday at THB 2.80 per share, decreased THB 0.12 or 4.11%.
In the meantime, the share price is trading lower than the offering price of the newly issued ordinary shares to the existing shareholders of the company for a capital increase.
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 will last until 14 June 2023.