Bundit Sapianchai, President of BCPG Public Company Limited, disclosed that, on August 20, 2020, the Company’s Board of Directors approved an authorized capital increase through the issuance of 1,301.7 million units of new ordinary shares, from 2,000 million units to 3,301.7 million units, at a par value of THB 5.00 per share. The allocation of newly issued ordinary shares is expected to bring about THB 1.02 million capital increase and a 75% increase in EBITDA in 5 years.

Existing shareholders are entitled to the new right offering shares at the ratio of 8 existing shares to 1new share, at the offering price of THB 11.50 each. The total unit of new right offering shares is approximately 250 million units or equivalent to the capital increase of THB 2,875 million. The new ordinary shares are also offered in private placement (PP) scheme at the same price. The total unit of new shares in PP scheme is approximately 391.5 million units or equivalent to the capital increase of THB 4,502 million. Existing shareholders and PP investors who subscribe to the allocation of newly issued ordinary shares will receive warrants, without any expense, to purchase ordinary shares of the Company at the ratio as follows;

1. Existing shareholders who subscribe to the new right offering shares will be entitled to BCPG-W1 and BCPG-W2 at the ratio of 2.8 new shares to 1 unit of warrant (with exercise ratio of 1 unit of warrant to 1 new ordinary share at the offering price of THB 8.00 each). The total unit of BCPG-W1 and BCPG-W2 is 178.6 million units or equivalent to 178.6 million newly issued ordinary shares (approximately THB 1,428.8 million).
   • 89.3 million units of BCPG-W1 will last for 2 years from the issuing date
   • 89.3 million units of BCPG-W2 will last for 3 years from the issuing date
2. Shareholders who are entitled to the private placement (PP) scheme will have right to purchase BCPG-W3 at the ratio of 2.1924 new shares to 1 unit of warrant (with exercise ratio of 1 unit of warrant to 1 new ordinary share at the offering price of THB 8.00 each). The total unit of BCPG-W3 is 178.6 million units or equivalent to 178.6 million newly issued ordinary shares (approximately THB 1,428.8 million).
   • 178.6 million units of BCPG-W3 will last for 1 year from the issuing date

BCPG-W3 will not be listed on the Stock Exchange of Thailand (SET) while the Silent Period will extend for 1 year, from the exercise date, for both the low offering share price in PP scheme and shares from exercising of BCPG-W3. The shareholders will be allowed to sell 25% of the locked-up shares after six months.

The capital increase is in line with BCPG’s 5-year strategic plan in terms of investment opportunities, which are also accelerated by COVID-19 pandemic. Moreover, a part of proceeds from this capital increase will be paid to the Company’s loan programs. This could eventually enhance the Company’s financial position. It is expected that, within 5 years, EBITDA of the Company could rise by 75%.

BCPG’s capital increase has drawn attention from potential foreign institution investors to invest in the newly issued ordinary shares with the total value of THB 4,500 million, reflecting a great confident over the Company’s investment plan. Also, Board of Directors of Bangchak Corporation, BCPG’s parent company, intent to oversubscription of current holding proportion at THB 2,000 million.

The Record Date of shareholders who are entitled to new right offering shares is set for October 15, 2020. However, aforementioned issues are still uncertain and depend on final resolution of the Extraordinary General Meeting (EGM) which will take place on October 7, 2020 at M Tower Building, BCPG’s headquarters. The list of shareholders who have right to participate in EGM 01/2020 will be announced on September 8, 2020.