UOBKH Sees Beyond BANPU’s Capital Increase Plan, Expecting M&A Deal Sooner Than Expected

UOB Kay Hian had a neutral view on BANPU's capital increase, seeing the move to push M&A deal faster than expected.

UOB Kay Hian Securities (Thailand) made a short analysis, stating a neutral view on the change in Banpu Public Company Limited (BANPU) capital increase plan.

Earlier this morning, BANPU changed the ratio of old share to newly issued shares from 4:1 (old shares: new share) to 3:1 and adjust number of issuance in BANPU-W4 and BANPU-W5 from 1,269 million shares to 1,692 million shares as well as it cancels to issue the BANPU-W6.

As a result, UOBKH estimated the share price after the XR/XW date (16 August 21) to be slightly lower to Bt10.7 from previously estimated at Bt10.9.


UOBKH was neutral on this news as the new issuance shares remain the same. However, BANPU’s share dilution effect for right offering this year to be around 33.3% from 25% previously and cash received to increase to around Bt8.5b from Bt6.3b for 2021-22 and increase to Bt12.7b from Bt9.5b in 2023. UOBKH believed BANPU’s financial plan to imply the upcoming M&A in the pipeline to be earlier than its expectations.


As of 15:24 local time in Thailand on July 21, 2021, the share price of BANPU fell ฿0.30/share or 2.17% to ฿13.50/share with a trading value of 1,486 million baht.


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