President Chusak Yongvongphaiboon said the offering of 50 million shares at Bt3.3 apiece had been fully subscribed and that the company would launch a rights issue of 50 million shares for shareholders at the same price on April 17-20 and April 23.

"We expect the issue to receive a similar warm welcome from existing shareholders. Business is expanding, and steel prices are on the rise in line with global prices," Chusak said in a statement released yesterday.

The company said it would use the proceeds to repay debts of Bt150 million, invest in 16 plots of land totalling 100 rai and 85 square wah and use the remainder as cash flow for future expansion.

After the recapitalisation, the company plans to renovate its factories and install new machinery, which should undergo test runs by the fourth quarter and be in production early next year.

The new product line will be used to produce higher-quality products, for which competition is only slight and which has higher margins. This will help boost profitability.

In the first year after the new product line comes on stream, the company's revenues should be least 30 per cent higher than the current annual growth of 5-10 per cent.

AMC will also increase its capital from Bt399.97 million to Bt549.97 million by issuing 150 million common shares: 50 million each for existing shareholders, the public and the exercise of warrants.