Nok Airlines may delist from the Stock Exchange of Thailand (SET) if the low-cost carrier fails to improve its financial performance and submit its 2022 financial results within a specific time period, according to the Thai bourse.
Nok meets the criteria for possible delisting as the company's equity has been negative for two years and the company remains unable to eliminate the cause of possible delisting, the SET said in a statement.
The due date for Nok to eliminate the criteria for delisting is Sept 8, 2024, according to the statement.
In addition, Nok has failed to submit its financial statements within a specified time period. The company must submit its statements by Oct 2 next year or face delisting, said the bourse.
Under SET regulations, listed companies are given three years to clear up the causes for delisting and another two years to clarify the required qualifications in order to resume trading.
"If the listed company cannot eliminate the causes of delisting or repossess the required qualifications in order to resume trading within the specified periods, the SET will consider delisting the securities of the company accordingly," said the bourse.
In a filing to the SET on Aug 31, Nok said the submission of financial statements of Nok and its subsidiaries for Dec 31, 2022 will be delayed from Aug 31 to Sept 30 this year.
"The delay was due to a reconciliation of data in the inventory system software and the auditor is reviewing the stock balance. As a result, the company needs more time to carefully review inventory account recording and information to ensure accuracy," said the airline.
According to SET data, the carrier posted a net loss of more than 1.4 billion baht in 2021, following a huge loss of 7.99 billion baht in 2020, as revenue decreased to 6.35 billion baht from 6.73 billion baht.
Nok posted losses during 2017-19 of 1.85, 2.78 and 2.05 billion baht, respectively.