SET-listed Nok Airlines Plc, an affiliate of Thai Airways International Plc, was successful in raising registered capital even though its major shareholder backed off the share offering.
In a letter to the Stock Exchange of Thailand, Nok Air's chief financial officer Brian Leslie Jeffery said although its major shareholder, Thai Airways, had not subscribed the right offering, it had received a very good response from other shareholders who did not only subscribe by right, but also oversubscribed substantially.
Nok Air earlier announced it hoped to increase its registered capital from 625 million baht to 1.41 billion. It said 625 million of the new shares would be set aside for existing shareholders at a ratio of one existing share to one new share. The shares were booked for purchase from May 16-19 and May 22.
However, THAI, which holds a 39.25% stake in Nok Air, decided not to buy the shares.
Mr Jeffery said Nok Air had received most of the right offering share subscriptions and had sufficient funds to cope with its financial needs. It would not have any liquidity problem.
Nok Air reported a net loss of 295 million baht in the first quarter this year. It posted a net loss of 2.8 billion baht last year.