, Thailand

KrungThai Bank eyes Bt14 B capital increase

KrungThai Bank hopes to raise at least Bt14 billion via a rights offering.


This will be the bank's first capital increase in 13 years.

KTB said that 2.8 billion shares at Bt5.15 par value would be offered to existing shareholders at the ratio of one new share to four old shares. Any unsubscribed shares will be offered to shareholders expressing an interest in taking shares in excess of their rights.

Any shares leftover from the subscription process would then be offered to specific investors at not lower than Bt12.60 apiece, which may be lower than 90 per cent of the market price.

Tisco Securities noted that KTB's capital hike from Bt57.6 billion to Bt72 billion has been anticipated due to the stricter capital rules under Basel III of the Bank for International Settlements as well as its massive loans to Sahaviriya Steel Industries.

Banks are not allowed to lend more than 25 per cent of their capital to a single borrower. Tisco and Bualuang Securities estimate a 20-per-cent dilution if the new shares are fully subscribed, while Tier-1 capital will rise from 8.6 per cent to 10.9 per cent.

At Bt12.60 a share, KTB will raise Bt35.2 billion.

For more.

Join Asian Banking & Finance community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!