Thai Airways Targets THB44 Billion in Share Offering
Thai Airways International (TG), headquartered in Bangkok Suvarnabhumi, is set to raise up to THB44 billion (USD1.27 billion) through a share rights offering. This strategic move is part of the airline’s efforts to conclude a court-supervised business rehabilitation process and relist on the Stock Exchange of Thailand (SET).
In a recent filing with SET on November 26, Thai Airways disclosed that it plans to offer 9.82 billion new shares to its existing shareholders at an asking price of THB4.48 (approximately USD0.13) per share. Each shareholder will have the opportunity to purchase 4.5 additional shares for every share they currently hold. The subscription period for this rights offering is scheduled to take place from December 6 to December 12. Following the subscription period, Thai Airways will publish a list of new shareholders and their respective allocations on December 19.
This share rights offering comes on the heels of a significant financial restructuring by Thai Airways. Earlier this month, the airline successfully erased approximately THB55 billion (USD1.6 billion) in debt by issuing around 21 billion new shares priced at THB2.5452 (USD0.074) each to creditors through a mandatory debt-to-equity swap. This move has substantially strengthened the airline’s balance sheet and positioned it for future growth.
At a media conference held in Bangkok on November 26, Thai Airways CEO Chai Eamsiri outlined the strategic importance of the additional capital raised through the share rights offering. Eamsiri stated that the funds would support the airline’s ambitious goal to increase its local market share to 35% by 2029, up from the current 26%. This target reflects a significant recovery from a decade-long decline in market share.
To achieve this growth, Thai Airways plans to expand its network for both short and long-haul flights, with a particular focus on the Asia-Pacific and Southeast Asian regions. Enhancing connectivity and optimizing the use of Suvarnabhumi Airport as a key hub are also integral parts of the airline’s strategy. By leveraging Suvarnabhumi Airport more effectively, Thai Airways aims to improve its operational efficiency and provide better connectivity for passengers.
Eamsiri emphasized the airline’s commitment to steady progress, describing the 35% market share target as “conservatively optimistic.” He expressed confidence in the company’s strategic initiatives and the positive impact of the additional capital on achieving these goals.
Thai Airways has shown signs of recovery, having returned to profitability last year after enduring ten consecutive years of losses. The successful completion of the share rights offering is expected to mark a pivotal moment in the airline’s turnaround, enabling it to exit the business rehabilitation process in the first half of 2025. Following this, Thai Airways plans to resume trading on the SET shortly thereafter.
The planned share rights offering is a critical component of Thai Airways’ broader strategy to stabilize its financial position and drive growth in a competitive aviation market. By raising THB44 billion, the airline aims to fund its expansion plans, reduce debt, and enhance its market presence both domestically and internationally.
Investors and stakeholders will be closely watching the developments of this share offering, as it represents a significant step towards revitalizing one of Thailand’s flagship carriers. The successful implementation of this strategy could set the stage for Thai Airways to reclaim its position as a leading airline in the region, offering improved services and expanded routes to meet the growing demands of travelers.
As Thai Airways moves forward with its share rights offering and continues its journey towards financial recovery and market expansion, the aviation industry will be keenly observing its progress. The airline’s ability to execute its strategic plans effectively will be crucial in determining its future success and sustainability in the competitive global airline market.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com