2023-10-09 13:14:00
The share price of Prime Road Power Public Company Limited or PRIME on Friday dropped completely to the floor. Setting a new low point in the year. After news from some securities companies which is a distributor of PRIME bonds, announced the cancellation of the sale of bonds. This is because the number of reservations is lower than estimated.
PRIME issues 2 series of bonds, totaling no more than 200 million baht, to replace the original 500 million baht bonds and use them to invest in renewable energy projects. The sales were scheduled for August 3-4 and August 7th.
The first generation of bonds, with a term of 1 year and 7 months, has an interest rate of 5.95% per year, and the second generation of bonds, with a term of 2 years and 4 months, has an interest rate of 6.15% per year, with credit rating of BBB- unsecured bonds. Interest is paid every 3 months.
Previously, there was news of the sale of 2 million PRIME shares at an average price of 1.30 baht by Mr. Pirun Shinawatra, grandson of Mr. Thaksin Shinawatra, who is the seventh largest shareholder of the company, in the amount of 155 million shares or 3.64% of the registered capital.
But the sale of Mr. Pirun’s shares is unlikely to have much of a negative effect on PRIME’s stock price. The stock price sank down to close 30% on the floor, close to 79 satang, a decrease of 34 satang or a decrease of 30.09 satang, likely due to the debentures. with more sales problems
Because if raising 200 million baht from issuing bonds is not as targeted, PRIME may have problems finding funding sources and liquidity problems in the future.
Investors therefore flocked to sell stocks. Because of concern regarding the financial situation that will follow
PRIME’s performance is not too bad. Because there is continuous net profit Only profits have decreased.
In 2020 there was a net profit of 288.26 million baht, in 2021 there was a net profit of 130.08 million baht, in 2022 there was a net profit of 137.07 million baht and for the first 6 months of this year there was a net profit of 81.48 million baht, decreasing from the same period last year with a net profit of 91.11 million. baht
The P/E ratio of PRIME is 26 times but has not paid dividends for a long time. Even though the operating results are profitable
There were no reports that the PRIME loan in the amount of 200 million baht had closed on August 7th. The entire sale has been canceled. Or only some distributors have canceled sales?
But the price of PRIME shares that were sold until they were stuck in the ground reflect that Offering of bonds of listed companies It has a significant effect on stock prices of listed companies for investors’ decision-making.
Securities and Exchange Commission (SEC) and the Stock Exchange of Thailand Therefore, we must urgently discuss together. To determine listed companies that issue bonds The results of bond sales must be reported immediately. After closing the offering
The same is true for offering additional shares. The securities require listed companies to report the results of the offering of additional shares as soon as the sale closes. For investors to use as information to consider in making investment decisions.
This year the company registered Turned to raising funds by issuing large amounts of bonds. Because borrowing money from commercial banks has complicated steps. The bank is strict in granting loans. To prevent bad debt
Raising funds by issuing additional shares It’s not as easy as during the bustling stock market. And if the capital increase is announced It will encourage investors to dump stocks. Because they don’t want to put additional capital into a listed company.
Listed companies therefore shift their focus to raising funds by issuing bonds. But if the bonds cannot be sold It will affect the trading of common stocks. Because investors followed by selling stocks, such as PRIME stocks that were rolled into the ground. Sacrifice unsold bonds
Immediate reporting of bond sale results of listed companies After closing the offering It has become very necessary information. Both investors in common stocks of listed companies and investors in bonds
Because investors know that Listed companies that invested in shares Was it successful in fundraising? and can take information on bond offerings into consideration when making investment planning decisions
In addition, it also helps general investors. and interested in investing in bonds There is information that can be used to evaluate the bond market. with more caution and carefully consider that Will you invest in buying bonds of any company?
Or they may decide to temporarily avoid investing in bonds.
Because the risk of investing in bonds is very high. Risk of being distorted When the bond expires, The bond issuer has no money to redeem.
No one knows Listed companies that issue bonds with a bang Set high interest rates to attract them. Are there any corporate bonds that cannot be sold like PRIME bonds?
Listed company bonds Caused damage to 100,000 people who invested in total.
But the SEC and the Stock Exchange have never moved to solve the issue of corporate bonds of listed companies.
Will wait for Mr. Settha Thavisin, the Prime Minister, to come down and give a jab as well as the issue of More Return Public Company Limited or MORE shares and Stark Corporation Public Company Limited shares. Or STARK once more?
The bonds of listed companies are all ruined. Causes widespread damage. Will the SEC continue to stand by and watch investors’ collapse?
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#Attack #PRIME #sacrifice #unsold #bonds #Sunan #Srichantra
