GPSC's THB 74 billion newly right issues were overwhelmingly bought by shareholders, allowing the company to expand in innovative power business.
GPSC has a successful capital raising plan of all THB 74 billion right issues with shareholders overwhelmingly bought up the whole lot of newly-issued ordinary shares, making the company to have greater financial strength with lower short-term debt after GLOW acquisition, while debt to equity ratio has dropped to 1 from 3.9 previously. That has made the company to be ready for new investment project to support growth in the future.
Mr. Chawalit Tippawanich, President and Chief Executive Officer of Global Power Synergy Public Company Limited or GPSC, the innovative power flagship of PTT Group, said the company has offered the newly-issued ordinary shares of THB 74 billion during September 30 - October 4, 2019, which received a warm welcome from shareholders. Existing shareholders subscribed all of 1,321 million shares, which as reflected the success of the company’s first issuance of newly-issued ordinary shares since it was listed in the Stock Exchange of Thailand (SET). Moreover, the company has registered an additional paid-up capital of THB 13,214,285,670 with the Department of Business Development, Ministry of Commerce on October 9, 2019, making the company’s total paid-up capital to rise from THB 14,983,008,000 to THB 28,197,293,670.
Proceeds from the capital raising will be used in the company’s deleveraging plan and to repay the bridge loans from financial institutions and major shareholders i.e. PTT Public Company Limited and PTT Global Chemical Public Company Limited, which provided support to GPSC for the GLOW acquisition. The proceeds would be allocated for maintaining the company’s financial ratio to be comparable to other companies in the same industry as well as cut the company’s net debt to equity ratio (Net D/E) to less than 1 time decrease from 3.9 times previously, making the company to have suitable financial structure for the investment in the current and future projects..
The company is confident that this capital increase would support the company to have a strong financial status and potential for business growth in order to invest in new projects with technologies and innovations that are in line with current and future trend. In addition, the GLOW acquisition will strengthen the company’s cash flow and also benefit and enable the company’s ability to pay the dividend in 2020.