FPT's capital expansion seen as a prelude to major investment plans

FPT's stock price on Monday rose by 5.88 per cent, or 60 satang, to Bt10.80 per share.

Thanapol Sirithanachai, FPT country chief executive officer, said that of the 1.39 billion newly issued ordinary shares, 695.78 million shares would be offered to existing shareholders, 463.85 million shares to the public and 231.92 million shares to a limited group of private investors.

He said the company's board of directors had the authority to consider offering the newly issued shares at one time or several times.

"The board of directors also approved to pay dividends for the operating results of 2019-20 at Bt0.60 per share on February 11 next year," he said.

Sorapong Jakteerungkul, senior analyst at Kasikorn Securities, said PFT's move to increase its capital is a signal that the company is aiming to invest in big projects.

He said FPT had previously bought 4,315 rai (690 hectares) of land on Bang Na-Trat Road from the Legal Execution Department, and also acquired Golden Land Property Development's shares, pushing up the company's debt-to-equity ratio.

"Besides, FPT has an opportunity to invest in its major shareholder Charoen Sirivadhanabhakdi's projects in Vietnam, so increasing capital is necessary to invest in the projects," he said.

He advised investors to invest in FPT shares in the long term at the target price of Bt16.70 per share as the company's performance is likely to grow further.