Energy Absolute Surges on Plan to Sell $446 Million Shares

(Bloomberg) -- Energy Absolute Pcl shares jumped as much as 15% after it announced plans to raise as much as 15 billion baht ($446 million) to shore up its finances and restore investor confidence hurt by an ongoing fraud probe by regulators.

The Bangkok-based renewable energy company is in talks with several potential domestic “strategic partners” for a private share offering of between 12 billion baht and 15 billion baht, Chief Financial Officer Vasu Klomkliang said in an interview on Thursday. It aims to complete the transaction by the end of the first quarter in 2025, he said.

Its shares advanced by the most since Aug. 23 during intraday trading on Friday.

Energy Absolute, which has operations encompassing everything from power generation to the assembly of trains, ferries and buses, is seeking to recover from the fallout of the fraud probe by Thai regulators and law enforcement agencies. It has faced hurdles in raising capital after the local mutual fund industry group in July banned new investments in its securities, forcing it to seek payment delays on two bonds. The bondholders gave their consent in separate meetings last month.

“The utmost urgency is to bring in new strategic partners as soon as possible,” Vasu said. “The company is just out of a coma, and needs additional capital and reputable partners to regain investors’ confidence,” he said.

The company’s total debt has increased by more than half since 2019 as it has boosted investments in electric vehicles and battery production, Bloomberg-compiled data show. After the probe, its market value has plunged to about $748 million from $11 billion at its peak in 2022.

Energy Absolute revamped its board and appointed Vasu as the new finance chief in August to lead talks with bondholders and creditors after his predecessor and the company’s founder were accused of about 3.5 billion baht fraud by the country’s market regulator. In addition to securing bond payment extensions, it recently obtained new loans as well. 

It is also preparing a backup plan to raise capital with the establishment of an infrastructure fund, Vasu said. The fund would raise money from the public to acquire the company’s renewable energy projects, such as solar and wind power plants. 

(Updates throughout)

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