Stocks of JKN Global Group Public Company Limited (SET: JKN) are still trading below its offering price of the newly issued ordinary shares that the company proposed to shareholders for a capital increase at a price of THB 3.00 per share.
The share price of JKN closed the morning session on Tuesday at THB 2.92 per share, increased THB 0.02 or 0.69%.
Late January, JKN announced an amendment of its capital increase plan, as the Board of Directors proposed to adjust the allocation ratio of the newly issued shares not exceeding 510,043,387 shares to the existing shareholders proportionate to their respective shareholding (Rights Offering) from the allocation ratio of 1 ordinary share per 1 newly issued ordinary share to be 2 ordinary share per 1 newly issued ordinary share at a price of THB 3.00 per share in order to minimize the dilution effect.
The company would allocate newly issued ordinary shares of not exceeding 66,666,666 shares by way of private placement to Unistretch Limited at an offering price of THB 4.50 per share.
The lower trading price in the market could lower the attractiveness of JKN’s newly issued ordinary shares, which have higher selling price.
One source in the brokerage firm told ‘Kaohoon’ that in case that the newly issued shares for Rights Offering did not fully subscribe, it could impact the company’s ability on debt repayment and its investment plan.
The subscription and payment period for JKN’s newly issued ordinary shares is 11-19 April 2023.
