PTT Exploration and Production's share price rose Bt5 or 3.25 per cent to Bt159 yesterday, as the company set a price for 650 million planned new shares at just Bt142 per share.
At Bt142, PTTEP aims to raise a total of Bt92.3 billion - making this equity offering the biggest in Thai-land's history. The price is at the top of the range proposed during the book-building process. It is well below the market price, indicative of investors' concerns over the dilution effect.
Asia Plus Securities estimated an average dilution effect of 22 per cent on prospective earnings per share in 2012 and 2013. In effect, once all these new shares start trading, the share price could fall by about Bt30.
A total of 650 million shares would be issued on a preferential basis to eligible shareholders, who are entitled to 0.195783 share per one existing share.
"The final offering price reflects current market demand for PTTEP's newly issued ordinary shares," said Tevin Vongvanich, president and chief executive officer. "We have received positive responses from our management roadshow, in which we met with investors in Thailand, Singapore, Hong Kong and the US."
PTT pledged its full support for the capital increase and has committed to subscribe to its entitlement fully.
The subscription period through sales agents, which include Bangkok Bank, Krung-thai Bank, Kasikornbank and Siam Commercial Bank, will be Monday through Thursday.
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Article source: http://www.thethailandlinks.com/2012/12/01/pttep-sets-new-share-price/
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