On Thursday morning, Asian Development Bank (ADB) reportedly made big lot transactions of Gulf Energy Development Plc (GULF) and B.Grimm Power Plc (BGRIM), causing share prices of both GULF and GRIMM to decline on the Stock Exchange of Thailand (SET).
Gulf announced on Thursday a 10 per cent capital increase through the issuing of new shares via Rights Offering. This would increase the registered capital by 10 per cent to 11.73 billion baht.
The new capital will be used to fund multiple projects undertaken by the company including wind farms in Germany and Vietnam as well as infrastructure projects at home.
Big lot transactions of GULF are at 176 million shares (1.7 per cent) with an average selling price of 35.15 baht per share, 6,186.40 million baht in total.
Transactions of BGRIM are 68 million shares (2.6 per cent) with an average selling price at 50.80 baht per share, 3,454.59 million baht in total.
ADB is expected to sell the transaction shares of GULF and BGRIM at a 5 per cent discount.
Trinity Securities said that both the GULF and BGRIM share prices received negative sentiment in the opening of the morning trade.
By the closing time at 12:30 p.m., GULF share prices fell by 4.73 per cent to 35.25 baht per share, 1.75 baht down from 37.00 baht per share. BGRIM share prices dropped 3.72 per cent to 51.75 baht per share, 2.00 baht down from 53.75 baht per share.
B.Grimm Power’s president, Preeyanat Soontornwata said the big lot transactions of ADB at 2.6 per cent, reduced from 4.7 per cent, is in accordance with ADB’s internal policy and their right as the shareholders.
The transaction will not affect the company’s business which is expected to have a 10-15 per cent profit growth in 2020, added Preeyanat.
