RCL in move to raise capital
Bangkok-listed intra-Asia carrier Regional Container Lines has announced plans to increase capital through issuing new shares to existing shareholders.
In a statement filed with the Stock Exchange of Thailand, the carrier said funds would be used to enhance the company"s financial liquidity and working capital and to support its business expansion plans.
The subscription ratio will be four to one and is expected to result in a 20% increase in registered capital, allowing the company to raise between Baht1.7bn ($51m) and Baht 1.8bn, according to Kim Eng Securities.
The container line recently reported it had plunged deeper into the red with a Baht3.8bn net loss last year.
RCL blamed 2009"s loss on vessel and property impairments totalling almost Baht1.6bn. It followed a Baht837m net loss in 2008. The loss also reflected an 18% drop in total container liftings to 2.4m teu. The carrier operates 41 containerships.