TMB Bank is looking to increase its registered capital to Bt187.28 billion from Bt155.06 billion by issuing 3.22 billion new ordinary shares with a par value of Bt10 per share - or a combined Bt32.22 billion.

The bank allocated new shares to its existing shareholders via a rights issue at a ratio of 4.75 existing shares to one new share at a price of Bt3 each. The bank's share subscription period started yesterday and lasts until Friday. The bank expects to earn Bt9.7 billion in cash from the capital increase.

Tanate Phutrakul, TMB Bank's chief financial officer, said the bank's individual shareholders did not show much interest in the share subscription, possibly because it was the first day of the subscription period. Retail shareholders might exercise their rights over the final two days of the subscription period, he said.

Results of the first day were not yet conclusive, he said.

The number of subscribed shares would be clear this evening or tomorrow morning.

The bank's major shareholders have already confirmed that they would exercise their rights, so the bank was confident that the capital-increase would be successful, he said.

"The bank believes that our core shareholders have already told their custodians to subscribe the new shares. This will become clear on the 25th [August]," Tanate said.

The bank's four major shareholders are the Ministry of Finance, with a 31-per-cent stake; DBS Bank, with 16 per cent; Thai Army Forces, with 5 per cent; and Thai Life Insurance Ltd with 2-3 per cent.

Somruedi Banchongduang

The Nation