BCPG, a renewable energy arm of Bangchak Corporation, expects to raise more than 10 billion baht from new stock sales as it seeks to finance investment projects.
President Bundit Sapianchai yesterday played down concerns about share dilution, saying the earnings gained from power generation projects and careful asset management would reduce dilution impact in the short term.
The company recently announced it would sell up to 1.3 billion shares to increase capital.
BCPG plans to spend more than 6.6 billion baht of the new capital on solar, wind and hydropower projects in Thailand and Laos.
Four solar power plants acquired earlier via takeover deals have a combined capacity of 20 megawatts. They are in Kanchanaburi, Lop Buri and Prachin Buri.
The money will also support a wind-powered electricity plant project with capacity of 600MW in Laos. The Vietnamese government has approved a plan to buy electricity from the plant, which is to begin operating in 2023.
BCPG will spend some of the money on debt repayment for hydropower projects Nam San 3A and Nam San 3B in Laos, and the construction of a 220-kilovolt transmission line to supply electricity to Vietnam.
The remaining portion of 3.7 billion baht will be used for further investment in new power plants in Thailand and abroad.
"We're studying many proposals and options," Mr Bundit said.
He expects a return on equity for shareholders of at least 10%.