Nok Air expects to raise Bt2.2 billion from rights issue next month

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Nok Air expects to raise Bt2.2 billion from rights issue next month

By THE NATION

 

 

Nok Air aims to raise Bt2.2 billion through a rights share issue, the company’s shareholders decided on Tuesday (January 14).

 

At an extraordinary meeting of shareholders, Nok Airlines Pcl decided to increase the company’s registered capital from Bt3.408 billion to Bt4.197 billion, as well as issue 888,147,358 ordinary shares at face value of Bt1 per share to existing shareholders on rights basis at the ratio of one new ordinary share for 3.5 existing ordinary shares. The offer price is Bt2.50 per share, with combined value not exceeding Bt2.22 billion. The shares are expected to be offered from February 3-7.

 

Nok Airlines chief executive officer Wutthiphum Jurangkool said the company expects to raise Bt2.2 billion from the rights issue, which will turn the shareholders’ equity from negative Bt659 million (as of September 2019) to positive. “We also expect that this move will help remove the ‘C’ [caution] letter from our [shares’] status,” he added.

 

Currently Thai Airways International (THAI) holds 15.94 per cent of Nok’s shares and remains the major shareholder. Wutthiphum said he had already presented the fundraising plan to THAI.

 

“As for the business plan this year, we are still focusing on a turnaround strategy by using software technology to manage the cost, and positioning ourselves as an on-time airline,” he said. “Furthermore, we will continue buying fuel via THAI at a competitive price, which should help in overall cost reduction since fuel is responsible for 30 per cent of total cost.”

 

Wutthiphum added that next month he will present the 2020 fleet plan to the board of directors. “This year we expect to buy a maximum of three new Boeing 737-800s to cover two new destinations in Asean, which will open around mid-2020,” he said. “Currently we have 16 737-800s and eight Q400s.”

 

Source: https://www.nationthailand.com/news/30380583

 

-- © Copyright The Nation Thailand 2020-01-15

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[yokat]

I'm not very good at reading this kind of document but it looks like Nok Air lost 2 billion baht in 2017 and 4 billion in 2018, plus if I remember correctly they should have a few of the infamous 737 Max 8. Who the hell is investing in that ?

http://nok.listedcompany.com/misc/FS/20190301-nok-fs-fy2018-en-02.pdf

[legend49]

50 minutes ago, yokat said:

I'm not very good at reading this kind of document but it looks like Nok Air lost 2 billion baht in 2017 and 4 billion in 2018, plus if I remember correctly they should have a few of the infamous 737 Max 8. Who the hell is investing in that ?

http://nok.listedcompany.com/misc/FS/20190301-nok-fs-fy2018-en-02.pdf

page 9 of the report is all you need to look at, just like Thai International, loss after loss , year after year.

[RichardColeman]

2 hours ago, yokat said:

Who the hell is investing in that ?

[Srikcir]

On 1/15/2020 at 3:43 PM, legend49 said:

page 9 of the report is all you need to look at, just like Thai International, loss after loss , year after year.

Son like father?

March 2019:

https://asia.nikkei.com/Business/Business-deals/Thai-AirAsia-does-U-turn-on-purchase-of-budget-carrier-Nok-Air

• Nok Air was founded in 2004 by Thai Airways and has become the country's second-largest low-cost carrier. Thai Airways has cut its ownership in the company to 21.8% from 49% over the years.