VGI Board green lights 2,583mn new shares issuance; priming for further O2O ecosystem expansion

Categories: News
Copied to clipboard.

VGI Plc (VGI), the leading Offline-to-Online (“O2O”) solutions across multiple platforms, revealed that its Board of Directors have approved the issuance of 2,583mn newly ordinary shares through a rights offering (“RO”) (10 existing shares: 3 newly ordinary shares) at a share price
of THB 5.00 per share, for a total value of THB 12,917mn. In addition, the Company will also issue and allocate warrants (VGI-W3) to RO subscribers at a ratio of 1 newly issued ordinary share per 1 unit of warrant. This capital strengthening aims to both fortify the balance sheet during these uncertain times and at the same time provide support to expand the business base in Company’s ecosystem to be stronger.
The transaction is subject to shareholder approval. Currently, VGI’s business has 3 business platforms under the O2O strategy, comprising
of Advertising, Payment and Logistics & Distribution business.

Nelson Leung, CEO of VGI, said “VGI has achieved great success from our recent strategic investment of THB 6,257mn to hold 15% stake in JMART Group. This was a pivotal move to strengthen our ecosystem and unlock value creation, given the high growth potential of the distribution business that is trending as part of the e-commerce boom. To this day, we remain steadfast in continuously exploring new investment opportunities to further bolster our ecosystem, while we are committed to delivering strong performance and sustainable returns for our shareholders, investors and all stakeholders, which is the core value guiding our business endeavors. Through this offering, we aim to use the proceeds to reduce debt and invest in new businesses which are currently under evaluation and anticipated to be announced within this year.”

“We firmly believe that our ability to constantly adapt and improve as well as our relentless strive to always seek new growth opportunities are key to sustaining our revenue strength and stable growth into the future,” Nelson added.