On June 18, 2020, True Corporation Public Company Limited (TRUE) sold 300 million units or 2.8% of the outstanding capital in the Digital Telecommunications Infrastructure Fund (DIF) at a price range of THB14.50 to THB14.80 per unit.
Bloomberg reported that the selling prices represent a 6.5% to 4.5% discount to the closing price of DIF at THB15.50 per unit on Wednesday. The sale could raise 4.35 billion baht to 4.44 billion baht.
TRUE has announced through the Stock Exchange of Thailand (SET) that the company sold 300 million units of DIF to certain investors whereas the selling price was determined through a book building process. The sale of DIF units represents approximately 2.82% of DIF’s total issued units and post the sale, the Company and its subsidiaries will hold approximately 26.18% of DIF’s total issued units.
According to the data compiled by “Kaohoon Online”, TRUE has cash and cash equivalents at 12,865 million baht and current portion of long-term loans at 31,023 million baht. Meanwhile, the company has current assets at 100,682 million baht and current liabilities at 157,788 million baht.
The current ratio is 0.64x, which is relatively low and showed that the ability of debt repayment for current liabilities is at a lower level. Meanwhile, TRUE has 519,763.75 million baht of liabilities and the equity is at 83,947.99 million baht, thus, TRUE’s D/E is at 6.19x, which is relatively high.
In an anticipation of the sale of DIF, TRUE could have sold the portion for debt repayment and to maintain its liquidity.