Thai owner of Miss Universe brand to raise 3 billion baht through rights issue

JKN said its board of directors had agreed at its meeting on January 5 to launch a rights issue of 1,019.79 billion shares in the ratio of 1:1.

The new shares are being offered at 3 baht a share, which is lower than the traded price .

Following the announcement, JKN’s shares were traded at between 3.40-3.50 baht per share.

Stock market gurus were puzzled by the decision to go for a rights issue, as it came after JKN’s chief executive, Jakkaphong “Anne” Jakrajutatip, unloaded her shares four times within a week in November.

Experts said it was unusual for a CEO or owner of a listed firm to sell their stake before issuing new shares to current shareholders.

JKN acquired MUO on October 25 for 800 million baht. JKN said it believed the brand would generate growth of at least 40% and prove to be an engine in its drive to become a big player in the global content commerce industry.

The decision to buy MUO sent JKN’s share price soaring from 3.80 baht to 5.60 baht on October 27.

But a month later, Jakkaphong sold four big lots of her shares via Krungthai XSpring Securiites. Her sales, according to her filing with the Securities and Exchange Commission, were:

November 23, 2022: 17,516,400 shares at the average price of 4.74 baht per share, totalling 83.17 million baht

November 24: 18,292,500 shares at an average price of 4.54 baht per share, totalling 83.04 million

November 25: 20,191,100 shares at an average price of 4.26 baht per share, totalling 86.01 million baht

November 28: 14,000,000 shares at an average price of 4.10 baht per share, totalling 57.40 million baht.

Jakkaphong revealed that she would be lending the proceeds from the sale of her first and second lots of shares to JKN without charging interest. JKN would use the amount to invest in the MU Water business and for organising the Miss Universe pageant.