Raimon Land plans 3,588 million baht capital increase for sustainable growthLegacy

Raimon Land Public Company Limited (RML), a premier real estate developer in Thailand, plans to increase its capital by 3,588 million baht (US$99 million) from 4,172 million baht (US$116 million) to a total of 7,760 million baht (US$216 million). This move is part of RML’s strategy to support sustainable growth, targeting continuous profit enhancement and a turnaround. The proposal will be presented for shareholder approval on March 22, 2024.

The capital increase proposal was approved in two of the company’s Board of Directors Meetings held on February 7 and 9, 2024. The capital hike will be divided into four portions of newly issued shares.

The first portion will be offered via private placement to two individuals: Kris Narongdej and Patee Sarasin, who will receive 1,622 million and 900 million shares, respectively. The second portion, comprising 308 million shares, will facilitate the exercise of rights according to the warrant to purchase the company’s capital increase common shares No. 1 (RML-W1).

The third portion, not exceeding 44 million shares, will be issued to directors and employees of the company and subsidiaries under warrants (RML ESOP WARRANT No. 1). The fourth and final portion will be offered to existing shareholders, comprising 714 million shares. The proceeds from the capital increase are expected to be no more than 1,711 million baht (US$47.69 million), reported Bangkok Post.

In the wake of this capital increase, Patee Sarasin will become a shareholder and director of the company from February 8, 2024. Sarasin’s role will be instrumental in diversifying RML’s investment expansion and project development, venturing into hospitality and real estate service businesses.

The capital increase will bolster the company’s financial position, supporting its growth trajectory over the next 2-3 years. RML aims to evolve into a Real Estate Financial Platform, inviting joint investment from domestic and international funds. The company has 36 years of experience in real estate, having developed projects valued over 150,000 million baht (US$41.79 billion), equivalent to over 1 million square metres in total area.

Business plan 

Concerning the 2024 business plan, RML aims for robust operating results and continuous growth through efficient investment management. The company will develop projects in collaboration with landowners, reducing costs and accelerating project timelines. There are plans to launch three ultra-luxury low-rise projects across three locations with a total value of 16,000 million baht (US$4.4 billion).

Moreover, RML aims to maintain continuous cash flow and high liquidity through the ‘One City Centre’ (OCC) project, currently considered the pinnacle office building project in Thailand. Located in the prime CBD Phloen Chit location next to Phloen Chit BTS station, OCC has achieved approximately 70% office and retail space occupancy rate.

Potential future development for OCC includes transforming it into a Private Equity Trust (PE Trust), a move that would further strengthen the company’s financial status.

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Author: Alex Morgan