General Engineering, a small-scale construction firm, will offer its shares for subscription from September 20-24 in a move to mobilise at least Bt170 million for business expansion.
The chairman of the firm's executive committee, Theerawat Kiatsomphob, said yesterday that the company had increased its capital from Bt1.14 billion to Bt4.89 billion by issuing 3.47 million new shares at the par value of Bt10 each. The new capital-increase shares would be allocated to existing shareholders at a ratio of one old share for three new ones at Bt0.6 each.
Apart from expanding the business, proceeds from the fund-raising would be used for working capital.
He said the company was confident that subscription of its new shares would be successful and the new issue would only have a 10-per-cent dilution effect on the company's shares.
Capital Engineering Network, which has been waiting to invest in General Engineering for while, is expected to subscribe to the new offer. Capital Engineering also holds a stake in Rayong Wire Industries, a producer of various types of wire for the construction industry, as well as the construction firm EMC.
Theerawat said General Engineering expected to meet its target of Bt1.2 billion in revenue this year, showing a 10-per-cent increase from last year. For the first six months, the company's revenue stood at Bt468 million, mainly because of its backlog worth Bt800 million, which is expected to be realised gradually as income worth Bt300 million this year.
The company also has potential contracts worth more than Bt800 million.