Thai KTB to raise $1.1b via rights issue

11-Aug-2012 Intellasia | Reuters | 7:01 AM

Krung Thai Bank Thailand second largest lender, said on Thursday it plans to raise 35.23 billion baht ($1.12 billion) via a rights issue.

The state-run bank told the stock exchange it will sell up to 2.79 billion new shares at 12.60 baht each with a ratio of one new share for four existing ones.

The share subscription and payment date would be between October 4 and October 11 and the bank’s registered capital will increase 72 billion baht from 57.6 billion after the share offer, KTB said in a statement.

The proceeds, it said, would be used to finance the bank’s business expansion.

Thailand’s government owns 55 percent of KTB though its Financial Institutions Development Fund.

Market talk about the bank’s capital raising plan had circulating in recent months but KTB denied there would be a share offer when rumours circulated in April.

Thursday’s announcement was made after the close of trading.

KTB shares closed down 2.9 percent on Thursday, with the broader market up 0.3 percent.

http://in.reuters.com/article/2012/08/09/thailand-ktb-idINL4E8J961K20120809