DPAINT's independent financial advisor has approved a plan to invest in The City Phuket Residence Company Limited, developer of The City Phuket condominium project, along with a rights offering of up to 1.84 billion shares at 0.20 baht each, raising no more than 368 million baht. The IFA stated that the transaction is appropriate and beneficial to the company and shareholders in the long term. This investment is part of a strategic plan to create a new S-curve, diversifying revenue from the original building paint and construction materials business into property development, which offers an investment return exceeding 30 percent. It also creates synergy by using DPAINT's own products in the project, reducing costs and boosting margins. The capital increase will lower the debt-to-equity ratio from 1.05 times to 0.55 times and support a total investment plan of approximately 359.43 million baht without relying heavily on loans. Mr. Ronnarit Tangkaravakoon, director and chief executive officer, said The City Phuket project is in a high-potential location in Phuket and is expected to generate strong revenue and returns over the long term, amid intense competition and continuous losses from the legacy business since 2024.
Delta Paint PCLIFA approves real estate investment and rights offering, expected to create new S-curve and reduce debt-to-equity ratio.
DPAINT's investment in The City Phuket Residence provides capital for its condominium project, boosting demand for its property development.