Minor International Pcl (MINT), the leading hotel operator in the ASEAN region, reported that the company has succeeded in offering 9,858 million baht capital raising shares with 30 per cent higher on expected subscriber numbers.
MINT’s Right Offering was designed to be successful in a volatile business and capital market due to the outbreak of COVID-19. The offering has received positive sentiment from various investors and shareholders.
Earlier, MINT cut its offering of 563 million new shares for existing shareholders from 18.9 baht to 17.5 baht per share.
The company will use its funds to run its existing businesses as well as pay back its loans. The fund will also be used as a reserve for future uncertainties amid the coronavirus situation.
MINT’s businesses began to recover since mid-May with 72 per cent of its total hotels and 95 per cent of its restaurants already reopening.
The founder and chairman of MINT, William Heinecke said that “the success of the company’s right offering shows that the shareholders still have confidence in the future of our business.”
By the closing time at 12:30 p.m. on Friday, MINT shares went down by 2.46 per cent, or from -0.50 baht to 19.80 baht, with a net worth of 539.70 million baht.
KGI securities predicted that MINT’s second-quarter earnings report will lose 6.8 billion baht due to the spread of the virus.
In the third quarter of 2020, KGI added that MINT will recover as its businesses start to reopen but investors must be careful of the company’s high debt level as MINT also has an interest payment of 1.8-2 billion baht.