BCPG’s shareholders approved an issuance of 1.3 billion new ordinary shares, aiming for THB 1.02 million capital increase for robust growth
Bundit Sapianchai, President of BCPG Public Company Limited, disclosed that, on October 7, 2020, the Extraordinary General Meeting of Shareholders (EGM) led by Pichai Chunhavajira, Chairman of Board of Directors, approved an authorized capital increase of THB 16,508.50 million through the issuance of 1,301.70 million units of new ordinary shares at a par value of THB 5.00 per each. The 250 new right offering (RO) shares will be allocated to existing shareholders at the ratio of 8 existing shares to 1 new share, at the offering price of THB 11.50 per share and the XR sign will be posted on October 14, 2020.
Other new ordinary shares of 674.5 million units will also be offered in private placement (PP) scheme at the same price for two financial institutes - Pilgrim Partners Asia (Pte.) Ltd. and Capital Asia Investments Pte. Ltd. Each institute will gain 195.75 million units of new ordinary shares (or equivalent to 5.93% of paid-in capital). Moreover, the 283 million units of newly issued ordinary shares will be offered in PP scheme to shareholders investing in the two institutes in book building regime.
Also, 377.2 million units will be allocated for a stock warrant for 4 types of new ordinary shares - BCPG-W1, BCPG-W2, BCPG-W3 and BCPG-ESOP. Existing shareholders who subscribe to the allocation of newly issued ordinary shares are entitled to BCPG-W1 and BCPG-W2 at the ratio of 2.80 new shares to 1 unit of warrant (with exercise ratio of 1 unit of warrant to 1 new ordinary share at the offering price of THB 8.00 each). BCPG-W1 will last for 2 years, while BCPG-W2 will last for 3 years from the issuing date. In addition, shareholders in the PP scheme will have right to purchase BCPG-W3 at the ratio of 2.1924 new shares to 1 unit of warrant (with exercise ratio of 1 unit of warrant to 1 new ordinary share at the offering price of THB 8.00 each) which will last for 1 year. BCPG’s board of directors and employees will have right to purchase BCPG-ESOP, which will last for 5 years, with exercise ratio of 1 unit of warrant to 1 new ordinary share at the first offering price of THB 13.70 each.
The allocation of newly issued ordinary shares is expected to bring about THB 10,235 million which, within 4 years (2020 – 2023), will be distributed to existing and under development projects, including new green power plants of the Company. Fund from the capital increase of THB 3,570 million will be apportioned to 600-MW wind power project in Laos (2020 – 2023) and payments to loan programs for 114-MW hydropower projects in Laos - Nam San 3A and Nam San 3B and 20-MW solar power projects in Thailand, including remaining value and more investment to improve efficiency and maintenance of the projects (2020 – 2022). The Company also plans to invest THB 1,870 million in transmission line system project in 2020. To expand its renewable energy businesses, the Company will invest THB 3,700 million in new green power plants both domestically and internationally (2020 – 2021).
“The capital increase will enhance BCPG’s financial position in terms of the reduction of liabilities which will result in more cash flow for new green investments for competitive growth in the future”, said Bundit.
According to Bundit, the final approval in EGM on October 7, 2020, immediately brought the Company THB 7,000 million from new ordinary shares offered through RO and PP scheme for Pilgrim Partners Asia and Capital Asia Investments. The considerable attention received from potential investors in the PP scheme could also be a significant confirmation for existing shareholders on the success of the Company’s capital increase plan, accelerating the investment in newly issued ordinary shares for competitive and sustainable growth of the Company in the long run.