STOCKS NEWS THAILAND-PTTEP falls to 3-week low amid capital raising overhang
Shares in oil and gas company PTT Exploration and Production Pcl fell to their lowest in three weeks as its cancellation of a shareholders' meeting to approve a capital increase raised doubts over the success of the plan.
PTTEP shares were down 1 percent at 148.5 baht, falling at one point to 148 baht, the lowest since Aug. 3. The stock dropped over 16 percent from its high in July amid concerns over the capital raising.
That compares with a 2.6 percent gain by the broader SET index for the same period.
State-backed PTTEP has postponed a shareholder meeting called to approve a $3.1 billion fundraising and may change the terms to address minority investor concerns about dilution. The stock slid 1.32 percent on Thursday following the news.
Broker CIMB Securities said uncertainty over the timeframe and final structure of the capital increase would pressure the share price. Its stock target price is 170 baht.
"Until the capital raising is completed, we maintain our neutral stance. To derive our target price, we continue to apply a 20 percent discount to its discount cash flow value to reflect the capital-raising uncertainty," it said in a report.
For PTTEP story, click
1149 (0449 GMT)
(Reporting by Viparat Jantraprap in Bangkok; email@example.com)
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