RML Increases Capital 3,588 Million Baht through a PP and RO to Bolster Business Expansion

RML (Raimon Land Public Company Limited), Thailand’s leading luxury and ultra-luxury real estate developer, has announced a capital increase of 3,588 million baht from the current 4,172 million baht, bringing the total to 7,760 million baht to support sustainable and continuous profit enhancement.

Mr. Korn Narongdej, Chief Executive Officer of RML, revealed that on February 7, 2024, the company's Board of Directors Meeting No. 1/2024 and on February 9, 2024, the company’s Board of Directors Meeting No. 2/2024 approved a plan to increase the registered capital by 3,588 million baht from the current 4,172 million baht, resulting in a new total of 7,760 million baht.

The increase in registered capital of 3,588 million baht comprises mainly of 2 portions, namely private placement (PP) to Mr. Kris Narongdej and Mr. Patee Sarasin in total of 2,522 million shares at the price of 0.42 baht per share and a right offering (RO) of 714 million shares at the price of 0.42 baht per share and at a rate of 9.38 existing shares to 1 new share. The balance is Warrant and ESOP at the strike price of 1 baht per share. The proceeds from the increase in capital are expected to be up to 1,711 million baht. The transaction has already been approved by the company's board of directors and will be proposed to seek approval at the Extraordinary General Meeting of Shareholders No. 1/2024 on March 22, 2024.

“On behalf of the company, we extend our heartfelt gratitude to all shareholders and stakeholders for their unwavering support to this successful capital increase, reflecting their trust and confidence in RML's business direction, the private placement (PP) is to guarantee the success of the capital increase and the right offering (RO) is to allow all shareholders participation. In this capital increase, newly issued shares have been allotted to Khun Patee Sarasin, who becomes a shareholder and director of the company, effective from February 8, 2024 onwards. Khun Patee will play an essential role in diversifying RML’s investment expansion and project development, by venturing into hospitality and real estate service businesses, such as branded residences and hotels in major tourist provinces like Pattaya and Phuket, to accommodate tourism and service sectors that will fully recover in 2024. Moreover, with his high caliber and expertise in aviation and tourism businesses, coupled with his committed leadership and outstanding credentials, Khun Patee will help strengthen our organizational capacity to grow and become number 1 leader in luxury and ultra-luxury real estate leader in Thailand,” Korn added.

This increase in registered capital will strengthen the company's financial position, supporting growth over the next 2-3 years under the current business plan. It provides ample capital for expansion. Looking ahead, we aim to evolve into a Real Estate Financial Platform, opening opportunities for joint investment from domestic and international funds. Leveraging the strength of the RML brand with over 36 years of real estate expertise, we've developed projects valued over 150,000 million baht, encompassing 5,600 units equivalent to over 1 million square metres in total area. All projects are sold out, with full quota sales to foreign customers. Bolstered by a skilled team capable of strategically developing projects responsive to changing customer needs in terms of design, construction, marketing, and sales, and backed by international partnerships in all aspects of development, we're in a prime position to expand this investment platform, tapping into more lucrative markets such as international portfolio investment, which offers higher and immediate returns. Initially, a large number of funds and investors have expressed interest in this business model, and the company is confident that this Real Estate Financial Platform will be a game-changer, leading us to a turnaround and recording a profit in 2024.

Regarding the 2024 business plan, the company aims for strong operating results and consistent growth through efficient investment management, emphasizing the asset-light strategy. This entails developing projects in collaboration with landowners, eliminating the need for land banking, thereby reducing costs, and accelerating project timelines. Additionally, there will be an increased proportion of project launches, particularly low-rise projects, to maintain liquidity. The company plans to launch three low-rise ultra-luxury projects across three locations with a total value of 16,000 million baht. These include a project in the heart of Sukhumvit valued at 3,000 million baht, with an average selling price of 400-700 million baht per unit, and a branded ultra-luxury villa project on Kamala Bay, Phuket, valued at 12,000 million baht, with an average selling price of 600-1,000 million baht per unit, including a low-rise ultra-luxury project on the Chao Phraya River project valued at 1,000 million baht.

Furthermore, the company aims to maintain continuous cash flow and high liquidity through the setup of a private equity trust to own and operate the country’s tallest Grade A+ luxury office building project, 'OCC' (One City Centre), a 61,000 square meters project considered the pinnacle office building project in Thailand in every aspect. Located in the prime CBD Phloen Chit location next to Phloen Chit BTS station with a connecting bridge to BTS station, Wireless Road, and Central Embassy, 'OCC' is highly regarded and has garnered significant interest. The building has achieved office and retail space occupancy rate as well as customer interest of approximately 70%, with prominent tenants such as The Boston Consulting Group (Thailand), a world-class consulting company; BNP Paribas, the 8th world’s largest French bank; Amadeus Asia, a global travel technology company; Marubeni, a leading Japanese company with diversified businesses covering 8 main industries; and a number of companies from Mitsubishi Group, a Japanese conglomerate, etc. This reflects that 'OCC' is an office building that many world-class companies trust and regard highly. Therefore, by structuring a private equity trust, new investors can participate in this structure to allow the project to have the optimum valuation and the highest return for our shareholders.