RML (Raimon Land Public Company Limited), a leader in luxury and ultra-luxury real estate development in Thailand, has announced an increase in its registered capital by 3.588 billion baht, raising it from the previous 4.172 billion baht to 7.760 billion baht to support sustainable growth and continuous profit enhancement.

Mr. Korn Narongdej, CEO of RML, revealed that on February 7, 2024, the company's Board of Directors held its first meeting of the year and on February 9, 2024, the second meeting approved the plan to increase the registered capital by 3.588 billion baht, raising the total registered capital from 4.172 billion baht to a new total of 7.760 billion baht.

The capital increase of 3.588 billion baht will be allocated in two parts: the first part will be offered to a limited number of individuals (Private Placement) to Mr. Krit Narongdej and Mr. Patee Sarasin, totaling 2.522 billion shares at a price of 0.42 baht per share. The second part will be offered to existing shareholders in proportion to their shareholding (Rights Offering: RO) totaling 714 million shares at the same price of 0.42 baht per share, at a ratio of 9.38 existing shares for 1 new share. Additionally, there will be warrants issued to support the exercise of rights to purchase new ordinary shares (RML-W1) and to support the exercise of rights for directors and employees of the company and its subsidiaries (RML ESOP WARRANT Project 1) at an exercise price of 1 baht per share. The company expects to raise up to 1.711 billion baht from this capital increase, which has already been approved by the Board of Directors. The next step is to propose it at the extraordinary shareholders' meeting on March 22, 2024.

“On behalf of the company, I would like to sincerely thank all shareholders and stakeholders for their support, which has made this capital increase successful. This reflects the trust and confidence in RML's business direction. The offering of shares to a limited number of individuals (Private Placement: PP) ensures the success of this capital increase, while the Rights Offering (RO) allows all shareholders to participate. The capital increase will allocate shares to Mr. Patee Sarasin, who will hold shares in the company and serve as a director starting February 8, 2024. Mr. Patee will play a crucial role in expanding the company's investment base and developing projects comprehensively, particularly in the hotel and service real estate sector, such as Branded Residences and hotels in major tourist cities like Pattaya and Phuket, to support the tourism and service business that is expected to fully recover in 2024. With Mr. Patee's expertise in the aviation and tourism business, combined with his committed leadership and outstanding performance, he will help strengthen the company to grow as the number one leader in luxury and ultra-luxury real estate in Thailand,” Mr. Korn added.

This capital increase will strengthen the company's financial position and support its growth over the next 2-3 years under the current business plan. It will also provide sufficient funding for business expansion. In the future, the company aims to take a step further by becoming a Real Estate Financial Platform, opening opportunities for joint investments from both domestic and international funds. With the strength of the RML brand, which has over 36 years of experience in the real estate business, having developed projects worth over 150,000 million baht, totaling 5,600 units or over 1 million square meters, all projects have been sold out, with sales to foreign customers fully booked. Coupled with a quality team that can develop projects through strategic planning that meets the ever-changing customer needs in design, construction, marketing, and sales, as well as having international partners in all related dimensions, will enable the company to expand its investment in this Platform model into markets with greater opportunities, such as investing in International Portfolios that offer high returns and immediate profit realization. Initially, many funds and investors have shown interest in this Business Model, and the company is confident that this Real Estate Financial Platform will be a game changer that will lead the company to turn around and show profits within 2024.

For the business plan in 2024, the company will continue to create strong performance and steady growth by managing investments efficiently, focusing on an Asset light strategy that allows the company to develop projects in collaboration with landowners, reducing the need to stock land, which will help save costs on land purchases and enable faster project expansion. Additionally, the company will increase the proportion of project launches, especially horizontal projects, to maintain high liquidity. It plans to launch three ultra-luxury horizontal projects in three locations, with a total project value of 16,000 million baht, including an ultra-luxury horizontal project in the Sukhumvit area valued at 3,000 million baht, with an average selling price of 400-700 million baht per unit, and an ultra-luxury horizontal project valued at 12,000 million baht, which is a Branded Villa of ultra-luxury level on Kamala Bay in Phuket, with an average selling price of 600-1,000 million baht per unit, as well as an ultra-luxury horizontal project along the Chao Phraya River valued at 1,000 million baht.

Moreover, the company will maintain continuous cash flow through the establishment of a fund in the form of Private Equity Trust (PE Trust) to own and operate the highest luxury Grade A+ office building in Thailand, 'OCC' (One City Centre), which has a total area of 61,000 square meters and is currently considered the pinnacle of office buildings in Thailand in every dimension in the CBD area of Ploenchit, adjacent to the Ploenchit BTS station, with a bridge connecting the building to the BTS station, Witthayu Road, and Central Embassy directly. It has garnered significant interest, with an occupancy rate of approximately 70% for office and retail space, including interest from clients, all of whom are globally recognized companies in Thailand. Notable companies that can be disclosed include The Boston Consulting Group (Thailand), a global consulting firm, BNP Paribas, the eighth largest bank in the world, Amadeus Asia, a global travel technology company, and Marubeni, a leading Japanese conglomerate with diverse businesses covering eight major industries, along with several companies in the Mitsubishi Group, another major Japanese conglomerate. This reflects that 'OCC' is a trusted office building by many global companies. Therefore, the establishment of the Private Equity Trust (PE Trust) will allow investors to participate in this fund to ensure that the project is valued appropriately and provides the highest returns to the company's shareholders.