Kerry Express (Thailand) Plc (KEX) announced a significant capital increase through the issuance of up to 2.8125 billion new ordinary shares, each with a par value of 0.50 baht. These shares will be offered to existing shareholders for 3.20 baht per share in a rights offering.
SF Express Group, which holds a 62.7% stake in KEX, has confirmed its intention to fully subscribe to its rights offering entitlements. The company, a leading logistics service provider in China and Asia, expressed its support for the capital increase plan in a statement to the Stock Exchange of Thailand.
The statement noted that SF Express Group may oversubscribe beyond its entitlement as it deems appropriate, in accordance with the relevant requirements and within the scope of the applicable laws.
The funds raised from this initiative aim to strengthen Kerry Express’s financial stability by repaying loans, enhancing its capital structure, and providing greater balance sheet flexibility for future financing opportunities. The company plans to use the funds as working capital, to fortify liquidity, sustain ongoing business operations, and facilitate strategic investments to maintain long-term competitiveness, said KEX Chief Executive Alex Ng.
“We anticipate this will bolster our financial resilience, fostering new expansion opportunities, while elevating our industry to the next level.”
SF International Holding (Thailand) Co., a subsidiary indirectly owned by SF Group, will handle the securities tender offer. This move underscores investor confidence in the growth potential and enduring stability of KEX’s business.
Kerry Express’s decision to increase its capital is a strategic move designed to bolster the company’s financial health and support its growth ambitions. The additional funds will provide the necessary resources to enhance its operations and pursue new opportunities in the logistics sector.
The rights offering is a significant step for Kerry Express, reflecting a proactive approach to maintaining financial health and positioning the company for future success. This capital increase is expected to provide KEX with the financial flexibility needed to navigate the challenges and opportunities in the logistics industry.
SF Express Group’s full subscription to its rights offering entitlements and potential oversubscription signals strong support and confidence in Kerry Express’s strategic direction. This backing from a major shareholder is likely to reassure other investors and stakeholders about the company’s prospects, reported Bangkok Post.
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