The Thai stock market reacted negatively to the announcement of capital increase by Nex Point Public Company Limited with the share price plummeting from -17.4% at the closing of the morning session to -27% in the afternoon.
Nex Point Public Company Limited (SET: NEX) stated that the Board of Directors’ Meeting resolved to propose to the Extraordinary General Meeting of Shareholders to consider approving the increase of the company’s registered capital.
The company is planning to raise capital by the amount of 8,837,309,596 baht from the original registered capital 2,021,827,399 baht 10,859,136,995 baht at a par value of THB1.00 per share, totaling 8,837,309,596 shares. This is to support the allocation of additional shares to 1) Private Placement, 2) Warrant of Private Placement and 3) Preferential Public Offering: PPO.
The offering price for private placement is THB2.55 per share and the price for public offering is THB1.00 per share.
The company aims to propose to the Extraordinary General Meeting of Shareholders No. 1/2024 to consider and approve the issuance and offering of warrants to purchase additional common shares of the company allocated to a limited number of persons ( Private Placement) in an amount not exceeding 75,000,000 units and with an exercise ratio according to the warrant of 1 warrant unit per 5 ordinary shares. The rights will be valid for 3 years. The period for exercising rights is every 6 months. The exercise price of the warrants is 12.75 baht per unit.
NEX plans to allocate additional common shares of the company, not exceeding 75,000,000 shares, with a par value of 1.00 baht per share, or equivalent to 3.76 percent of the paid-up capital of the company after increasing the paid-up capital to those interested in investing who can promote and support the company’s current business and future projects will become business partners and play a role in promoting the company’s operations
After increasing the paid-up capital, the company may allocate it at one time or several times by setting the price of newly issued ordinary shares at 2.55 baht per share or equivalent to a total value not exceeding 191,250,000 baht
Meanwhile, 375,000,000 shares with a par value of 1.00 baht will be allocated to support the exercise of rights according to the warrants to purchase additional ordinary shares of the company that will be allocated to a limited number of persons ( Private Placement). Not more than 75,000,000 units
Then, the company will allocate additional shares to support the offering of newly issued shares to existing shareholders in proportion in a Preferential Public Offering (PPO) method.
NEX disclosed that the company can issue and offer to sell additional common shares at one time, in full or in part, by offering them at one time or from time to time. The offering price is 1 baht per share. The allocation of shares will be done 2 times, which is determined in the following ratio:
1st sets the ratio of 1 existing share to 1 new share.
2nd sets the ratio of 1 existing share to 1.5 new share.
The accumulation of shares allocated to private placement and to support the warrant totaled 450 million shares, which will leave 8,387 million shares for PPO.
