Energy Absolute Public Company Limited (SET: EA) is aiming to secure up to 15 billion baht ($446 million) through the issuance of new shares to bolster its financial position and rebuild investor trust following a fraud investigation that caused the Thai renewable energy firm’s stock to plummet to unprecedented levels, according to the report from Bloomberg.
The Thailand-based company, specializing in various operations spanning power generation and transportation equipment assembly, is currently in discussions with multiple potential domestic “strategic partners” for a private share placement ranging between 12 billion baht and 15 billion baht, as revealed by Chief Financial Officer Vasu Klomkliang in a recent interview on Thursday. The objective is to finalize the transaction by the conclusion of the first quarter in 2025.
Energy Absolute is grappling with the aftermath of the fraud inquiry conducted by Thai regulatory bodies and law enforcement agencies. Burdened with a total debt of 64 billion baht, the company has encountered challenges in raising funds. Subsequently, bondholders granted their approval during separate meetings last month to postpone its repayment of debentures.
Vasu emphasized the critical importance of swiftly engaging new strategic partners, stating, “The company is just out of a coma, and needs additional capital and reputable partners to regain investors’ confidence.”
In a proactive move, Energy Absolute is devising an alternate strategy to raise funds by establishing an infrastructure fund, which would solicit investments from the public to acquire the company’s renewable energy ventures, including solar and wind power installations.
Following a reshuffle in its board of directors and the appointment of Vasu as the new CFO in August to spearhead discussions with bondholders and creditors, the company has secured extensions for bond repayments, procured fresh loans, and witnessed a partial recovery in its share value subsequent to hitting a historic low in early August.
