Raimon Land Plc, a leader in luxury and ultra-luxury real estate development, has announced a capital increase of 3.58 billion baht to 7.76 billion baht and a warrants issue.
The move is aimed at supporting sustainable growth and is expected to lead to continuous profit enhancement.
Chief executive Korn Narongdej said the company's board of directors approved the registered capital increase plan on Feb 9, 2024.
The registered capital increase comprises four portions of newly issued shares.
The first portion will offer shares via private placement at 0.42 baht per share, allocated to two people: Kris Narongdej (1.62 billion shares); and Patee Sarasin (900 million shares).
The second portion, not exceeding 308 million shares, will support the exercise of rights according to a warrant to purchase the company's capital increase common shares No.1 (RML-W1).
The third portion, not exceeding 44 million shares, will be used to support the exercise of rights under warrants to purchase additional common shares of the company issued to directors and employees of the company and subsidiaries (RML ESOP WARRANT No. 1).
The fourth portion comprises an offer to existing shareholders in proportion with their shareholding, comprising 714 million shares at a price of 0.42 baht per share, at a rate of 9.38 existing shares to one new share.
The proceeds from the increase in registered capital is expected to be no more than 1.71 billion baht.
Mr Korn said the transaction has already been approved by the company's board of directors and will be proposed to seek approval at the extraordinary general meeting of shareholders on March 22, 2024.
He added that Mr Patee will play an essential role in diversifying Raimon Land' s investment expansion and project development.
"With his high calibre and expertise in aviation and tourism businesses, coupled with his committed leadership and outstanding credentials, Mr Patee will help strengthen our organisational capacity to grow and become the No.1 leader in luxury and the ultra-luxury real estate leader in Thailand," Mr Korn said.
He added that the capital increase is also expected to strengthen the company's financial position, supporting growth over the next 2–3 years under the current business plan.
"It provides ample capital for expansion. Looking ahead, we aim to evolve into a real estate financial platform, opening opportunities for joint investment from domestic and international funds," he added.
Mr Korn said the company plans to launch three low-rise ultra-luxury projects across three locations with a total value of 16 billion baht. These include a project in Sukhumvit valued at 3 billion baht, with an average selling price of 400–700 million baht per unit; a branded ultra-luxury villa project on Kamala Bay, Phuket valued at 12 billion baht, with an average selling price of 600–1 billion baht per unit; and a low-rise ultra-luxury project on the Chao Phraya River project valued at 1 billion baht.
The company aims to maintain continuous cash flow and high liquidity through the country's tallest Grade A+ luxury office building project, OCC (One City Centre), an office building project located in a prime CBD location next to Phloen Chit BTS station.