TPI Polene Plc is preparing to raise up to THB16bn through a private placement and an offer of new shares to its existing shareholders in order to pay down its debts.
The private placement will involve 857.77M new shares at an offering price of THB10.15 each. Subscriptions will take place on Aug 21 and the purchasers must agree to a two-year silent period during which they cannot sell the shares, the company said in a statement to the Stock Exchange of Thailand.
The bulk of the private-placement shares are to be sold to Prachai Leophairatana, the company’s founder, and four members of his family. Their combined holdings would increase to 61% from 41% currently, according to an analyst who asked not to be named.
Currently, creditors hold another 49% of TPIPL and small shareholders the remaining 10% of the company.
In addition, the country’s third largest cement producer will offer 807.5M new shares via a rights issue to existing shareholders at a ratio of one existing share to one new share at THB10 each. Shareholders on the register as of July 18 are eligible, with the subscription and payment period from Aug 7-11.