Natural Park yesterday launched a Bt2.2-billion fund-raising plan by issuing 4.03 billion capital-increase shares to existing shareholders, to repay debt recently borrowed to acquire significant stakes in Sansiri, Bangkok Metro (BMCL) and Finansa.

The financially ailing company said in a filing with the Stock Exchange of Thailand that the newly issued shares would be offered to existing shareholders at a ratio of two existing shares to one new one.

The shares will be sold through a rights offering for 55 satang apiece, well above the stock's price of 22 satang at yesterday's close of market.

Shares remaining from the allocation will be allotted to specific investors at an offering price not less than 55 satang apiece and not below 90 per cent of the market price, which will be calculated from the weighted average buy-sell price during 15 working days before the board of directors resolves the offering of such shares to investors.

The company's registered capital will be raised from Bt8.06 billion to Bt12.09 billion after the share allocation. The recapitalisation is subject to approval by the company's shareholders, who will convene in a meeting on April 27.

A company source said proceeds from the share allotment would be used to repay debt that was almost due and which was borrowed from Krung Thai Bank and Siam City Bank to acquire a sizeable stake in the three listed firms. Natural Park owns 24.6 per cent of Sansiri, a 18 of Finansa and 13.94 per cent of subway operator BMCL.

The loans reportedly total Bt3.7 billion.

Earlier, the property developer decided to sell a large lot of shares in BMCL to Ch Karnchang at Bt1.52 apiece and to the public through a recent initial public offering of BMCL shares for Bt1.31 each. Natural Park bought BMCL's shares for an average price of Bt1.52 apiece.

In addition, the company has sold several assets, including Le Royal Meridien Baan Taling Ngam and Le Royal Meridien Phuket Yacht Club, to service its debt.

The source said the company set an offering price of 55 satang apiece, because that was the company's book value.

An analyst at Asia Plus Securities said the selling price was higher than the market price and that its book value would decline to 31 satang after the share allocation.

Another analyst suggested Natural Park might not want to sell shares to existing shareholders, since the selling price exceeded the market price. The company's target would instead be specific investors.

The company's net loss widened to Bt1.05 billion last year, from Bt669.83 million in 2005.

As of the end of last year, the company had total assets of Bt11.27 billion and total liabilities of Bt 5.47 billion. Total revenues fell 64.65 million last year to Bt973.84 million.