Shares of Ananda Development Public Company Limited (SET: ANAN) plummeted by up to 20.5% during the morning session on Monday following the company’s disclosure of the closing date for its five debenture series valued at 11.3 billion baht.
ANAN informed debentureholders through The Thai Bond Market Association (ThaiBMA) on Friday about the closing date for ANAN247A, ANAN251A, ANAN251B, ANAN256A, and ANAN261A, with maturity dates spanning from July 2024 to January 2026. The closing date is slated for June 13, 2024, while a debenture holder meeting is scheduled for June 27, 2024, without specifying the meeting’s agenda.
The ThaiBMA flagged ANAN with an alert symbol, seeking additional information from the company regarding the closing date. ANAN has been dealing with issues related to the Ashton Asoke condominium, as ordered by the Civil Court to refund a substantial amount to petitioners, with pending appeals from the company.
Although ANAN’s share price partially recovered during the morning session and closed down by 6.85%, Krungsri Securities highlighted that the company is confident in repaying its maturing 3,231 million baht debenture in July using proceeds from the sale of five service apartments. However, there are concerns that the sales may not generate sufficient funds by the due date, prompting speculation that the debenture holder meeting aims to address contingency plans.
Krungsri Securities advised investors to adopt a “Reduce” rating for ANAN, setting a target price of THB0.75 per share, foreseeing downward pressure on the share price due to these developments.
