AAV pulls in B14bn from capital-raising strategy

AAV pulls in B14bn from capital-raising strategy

Thai AirAsia planes park at Suvarnabhumi airport on Sept 20, 2020. (Photo: @airasiaTh Twitter account)
Thai AirAsia planes park at Suvarnabhumi airport on Sept 20, 2020. (Photo: @airasiaTh Twitter account)

SET-listed Asia Aviation (AAV), the majority shareholder of Thai AirAsia (TAA), completed fundraising of 14 billion baht to strengthen its financial position for a future rebound.

Tassapon Bijleveld, executive chairman of AAV, said the recent rights offering to its existing shareholders of 1,714,285,714 ordinary shares worth 3 billion baht, derives from strong support and confidence from shareholders despite the current economic downturn and uncertainties from the viral situation.

The issue was fully subscribed within five days after it was available on Jan 10 at the ratio of 5.7625 existing ordinary shares to 1 ordinary share at an offer price of 1.75 baht per share.

The latest rights offering is set as the final phase of AAV's 14-billion-baht capital-raising plan which was given approval along with the company's restructuring plan at the shareholders meeting on Nov 26, 2021.

The company previously increased its registered capital by offering 8.8-billion-baht worth of private placements as well as 2.2-billion-baht convertible bonds.

Mr Tassapon said once the virus situation is eased, the company will commit to strive and lead in order to grow sustainably.

He said the positive response from its shareholders and investors throughout the whole process reflects confidence in the company and long-term growth potential amid the crisis.

TAA and local airlines faced two nationwide lockdowns that grounded aircraft in April 2020 and July 2021.

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