Kerry Thailand to Raise Capital for Debt Repayment and Strengthening Financial Position

Kerry Express (Thailand) Public Company Limited (SET: KEX) has announced a capital increase over a fold for debt repayment and strengthening its financial position to support ongoing business operations and capital investment.

KEX has announced that its Board of Directors have approved the resolution to propose to the shareholders for the allocation of the newly issued ordinary shares of the company in an additional amount of THB 1,409,250,000 from the original registered capital of THB 890,000,000 to the registered capital of THB 2,299,250,000 by issuing not exceeding 2,818,500,000 new ordinary shares at the par value of THB 0.50 per share.

The newly issued shares will be offered to the existing shareholders of the company proportionate to their respective shareholding (Rights Offering), whether at once or at several times, at the allocation ratio of 0.6196 existing ordinary shares per 1 newly issued ordinary share at the offering price at THB 3.20 per share.

If the company successfully offers all of the newly issued ordinary shares, it will receive approximately THB 9,000 million from offering to the existing shareholders proportionate to their respective shareholding.

The company has resolved to approve the determination of the record date for the list of shareholders with the right to subscribe to the newly issued shares proportionate to their respective shareholding (Rights Offering) (Record Date) to be on 2 August 2024 and the subscription period for the newly issued ordinary shares to be from 21 August 2024 to 27 August 2024 (totaling 5 business days). 


KEX aims to utilize the funds raised to repay the company’s loans, thereby strengthening the company’s financial position to ensure the company maintains an appropriate capital structure and financial ratios to comply with the requirements of financial institutions and to retain flexibility in future financing.

Additionally, the company will use the funds as working capital to, including but not limited to, purchase transportation vehicles, maintain operational equipment, enhance the liquidity of the company and to support ongoing business operations and capital investment required for long term competitiveness.