GULF Expects to Raise ฿32Bn of Funds for More Mega Projects in the Pipeline!
GULF Expects to Raise ฿32Bn of Funds for More Mega Projects in the Pipeline!
GULF Expects to Raise ฿32Bn of Funds for More Mega Projects in the Pipeline!
23 ก.ค. 2563

Gulf Energy Development Public Company Limited (GULF) has announced the resolutions of the Board of Directors’ Meeting No. 10/2020 held on July 23, 2020 to approve the increase of the registered capital of GULF by issuing 1,066,650,000 newly issued ordinary shares at the offering price of THB 30 per share.
 
The Board of Directors has approved the increase of the registered capital of the company from THB 10,666,500,000 to THB 11,733,150,000 by issuing 1,066,650,000 newly issued ordinary shares each at the par value of THB 1 per share, totaling THB 1,066,650,000, for the purpose of an offering to the existing shareholders of GULF in proportion to their respective shareholdings (Rights Offering or RO).
GULF announced the offering price of the newly issued ordinary shares at THB 30 per share which is the price calculated from the volume weighted average price of the company’s shares during 15 consecutive trading days prior to the date of the meeting of the Board of Directors with a discount of approximately 21.37 percent.
The allocation shall be at the ratio of 10 existing ordinary shares to 1 newly issued ordinary share. Any newly issued ordinary shares remaining unsubscribed from the first allocation will be re-allocated to every shareholder who has oversubscribed for and fully paid the price of the shares.
 
GULF stated that the objectives of the capital increase were to use the proceeds for investment in projects that are in the company’s plan, e.g. renewable energy projects in Vietnam, wind energy project in Germany, infrastructure and utility projects such as Map Ta Phut Industrial Port Development Phase 3 project (phase 1), Laem Chabang Port Development project (phase 3), Intercity Motorway projects, natural gas project in Oman, Hin Kong power plant project, Burapa Power power plant project and to use the proceeds for business expansion in the future whereby GULF sees an opportunity to expand its business in Asia, Europe, America and others.
Meanwhile, certain part of the proceeds will be used for repayment of existing loans to reduce interest burden, as well as to use as working capital of the company.
 
After the allocation of the newly issued ordinary shares to the existing shareholders in proportion to their respective shareholdings, price dilution will be subject to the exercise of the rights to purchase newly issued ordinary shares of each existing shareholder. In the case that all existing shareholders do not exercise their rights to purchase any newly issued ordinary shares, there will be no price dilution effect on the shares of the company. However, in the case that all existing shareholders fully exercise their rights, the price of the shares of the company will be affected and it will be decreased by not more than 1.94 percent.
The volume weighted average of GULF’s share price 15 consecutive trading days prior to the Board of Directors’ Meeting dated July 23, 2020 (during July 1, 2020 to July 22, 2020) which is equivalent to THB 38.15 per share.
 
The Excluding Right (XR) date will be on August 6, 2020, and the agenda will be proposed to the Extraordinary General Meeting of Shareholders for approval on August 27, 2020. Afterward, the subscription period of the newly issued ordinary shares will be on September 14 – 18, 2020 (5 business days in total).
 