The SET-listed Thoresen Thai Agencies (TTA), a dry bulk shipping service, has revised down its fund-raising plan to 6 billion baht plus warrants from 9 billion planned earlier after the bigger amount failed in a recent shareholder vote.
With the next annual shareholder meeting to be held by the end of January, the company hopes that a lower capital increase will help boost investor confidence in the plan.
TTA also changed its rights offering ratio from a previous 1:1 to 5:2, as it was one of the main points of contention with investors, plus free warrants with the exercise right within 2.5 years at a price of 17 baht. The whole plan will proceed over a period of 30 months.
TTA executive director Chalermchai Mahakitsiri, also the new major shareholder, said the board of directors passed the new capital-raising plan on Monday.
Under the new plan, TTA's registered capital will increase from 708 million baht to 1.13 billion baht by issuing 424.80 million new ordinary shares at par value of one baht each, including new ordinary shares of 283.2 million units in combination with up to 141.6 million units of warrants (TTA-W3) to purchase ordinary shares.
"We believe the existing shareholders will support the new capital plan, including the new rights offering ratio and warrants," said Mr Chalermchai.
He said the company essentially scaled down investment as minor shareholders had disagreed with the full investment amount. Despite the rift with minor shareholders, the company has no plan to sell shares through private placement or find a new private partner any time soon.
TTA plans to increase its fleet of dry bulk vessels from 16 now to 28-30 in the next two or three years on expectations that the shipping business will enjoy a recovery.
Mr Chalermchai said the shipping business under TTA is expected to be stagnant in 2013, recovering by 2014, while Mermaid Maritime, TTA's deep-sea energy-linked business, has better prospects in the new year.
Other businesses such as coal and fertiliser expect steady growth.
"The overall outlook for operations in 2013 should be profitable," said Mr Chalermchai.
TTA is seeking to change its public image from that of a shipping company to more of an investment firm.
The revenue structure is divided into three equal parts comprising shipping, energy and others.
"TTA is the holding company, and our revenue is not as reliant on shipping anymore, so we are ready to take the opportunity to invest in other related businesses," said Mr Chalermchai.
Shares of TTA on the SET closed yesterday at 16.40 baht, up 50 satang, in trade worth 45.28 million baht.