THAI Airways International expects to raise as much as 44 billion baht (S$1.7 billion) from a share rights offering, the carrier’s final major step to exit a court-supervised debt restructuring and allow the resumption of the trading of its stock.
Thailand’s flag carrier set the share price for its 9.8 billion new shares for existing shareholders at 4.48 baht, according to its exchange filing late Tuesday (Nov 26). Each holder of existing stock can purchase 4.5 new shares, it said.
The airline, like regional rivals, is benefiting from a post-pandemic travel boom since 2023 that has boosted earnings and cash flow. The turnaround prompted Thai Airways to order a new fleet of Boeing and Airbus jets to expand flights and destinations.
“Thai Airways has gone a long way from a near collapse to its strong emergence to become a dominant player in the global aviation industry again,” Piyasvasti Amranand, the court-appointed debt administrator, said at a press briefing on Wednesday. “Strong business outlook and attractive share price should help Thai Air achieve the capital raising through rights offerings.”
The carrier’s creditors also agreed to convert about 53 billion baht debt into shares after the subscription period ended earlier this month, according to its statement. The airline will issue about 21 billion new shares to creditors at 2.5452 baht each.
Thai Airways’ shareholder equity will reverse to a surplus of 18 billion baht after completing the debt-to-equity conversion with the creditors, said Piyasvasti. It has a negative shareholder equity of about 27 billion baht after years of losses, he said. The airline’s total debt will drop to 65 billion baht after the debt conversion.
The airline aims to emerge from its debt-restructuring plan in 2025, five years after it filed for bankruptcy protection. The state-controlled airline returned to profit in 2023 after it had posted losses from operations every year from 2013, which were worsened by the Covid pandemic. The airline anticipates the resumption of stock trading in the second-quarter of 2025.
The subscription period for the rights offering is set for Dec 6 to 12. The names of shareholders allocated the new shares will be announced on Dec 19, the company said. BLOOMBERG
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