Ratch Group Plc, Thailand's largest private power generation company by capacity, has raised 25 billion baht in a rights issue to expand its business and support its loan payment plans.
The company sold stock to shareholders at 34.48 baht per share as it attempts to increase its market capitalisation to 200 billion baht by 2025, up from 80.47 billion baht as of yesterday.
Choosri Kietkajornkul, chief executive of Ratch, said the funds will increase the company's capital expenditure for power generation and infrastructure projects in Thailand and overseas.
Up to 80% of capital spending is allocated for the power business, while 20% will go to infrastructure development, said Ms Choosri.
She said Ratch aims to achieve 10 gigawatts of electricity generation capacity by 2025, up from more than 8GW, and wants renewable energy to account for 25% of total fuels, up from 15% at present.
The latest fundraising follows Ratch's acquisition of two coal-fired thermal power plants, with a combined capacity of 2,045 megawatts, from PT Paiton Energy (PE) in Indonesia.
It bought a 45.5% share in PE from Mitsui & Co through its wholly-owned RH International (Singapore) Corp Pte Ltd.
The investment also allowed RH International (Singapore) to own a 65% stake in the operation and maintenance business of the power plants, 150 kilometres southeast of Surabaya in Indonesia's East Java.
PE is one of the largest independent power producers in Indonesia. It supplies electricity to both businesses and households.
The company signed a power purchase agreement with PT Perusahaan Listrik Negara, Indonesia's state electricity company. It has 21 remaining years to supply power to the state grid.
Ratch earlier announced a plan to spend 1.72 billion baht to grow the capacity of a gas-fired power plant in Pathum Thani's Nava Nakorn Industrial Promotion Zone as it continues its expansion in a bid to attain the 10GW goal.
The company aims to increase electricity generation capacity to 215MW, up from 185MW, and steam production to 45 tonnes per hour, from 40 tonnes per hour, at this facility.