The Erawan Group successfully completed right offering with 147% oversubscribed, support the strength of the capital structure and future plans

The Erawan Group PLC has succeeded capital increase plan through the right offering to the existing shareholders, which shareholders showed overwhelming confidence in the company with a highly favorable response to the recent rights offering which was 147 % oversubscribed. The proceeds from this capital increase will strengthen the Company's financial position and support the company for future expansion plans.

Petch Krainukul, president of The Erawan Group, announced that the subscription of the rights offering of 2,014 million shares by the company's existing shareholders has been extremely well received. The issue was fully subscribed at the pre-set ratio of 1 new ordinary share per 1.25 existing ordinary shares at a subscription price of 1 THB per new share. The subscription period was between 7 and 11 June, 2021. ERW's shareholders expressed strong interest and most overbooked the new issue in excess of their own assigned quota, resulting in a 147% oversubscription. We received strong support from the full range of existing shareholders, including domestic, regional, and international institutional investors, as well as retail investors. In addition, we target the raising additional funds of 1 billion baht from the warrants which will be issued to the shareholders who receive the rights to the right offering, with an exercise term of 3 years on June 14, 2024 and the exercise price of 3.00 THB.

The proceed from the right offerings will be used to strength the company's financial position, which will help us in having an appropriate capital structure for business expansion and allow company to expand its business investments at an appropriate financial ratio. This fund will also help us to increase confidence in the implementation of the long-term investment strategy. We are continuing to focus on investment in the budget hotel segment both in Thailand and the Asia-Pacific region as this segment has recorded the strongest performance and the most resilience amid the COVID-19 pandemic. This will help support the company's performance to create stable and sustainable growth in the future for all stakeholders.

Under the current situation during the COVID-19 pandemic, all our hotels are fully open for business operations along with uplifting hygiene and cleanliness standard and safety. We have encouraged all employees to be vaccinated as much as possible to increase the confidence of our guests. Our business operation has also remained under strictly cost control measurements, preserving liquidity, and managing cash flow. However, we believe that the increasing number of COVID-19 vaccination around the world, including Thailand and the re-opening plan of country will positively affect Thailand tourism industry to see more clearly for the recovery in the future.

On behalf of The Erawan Group, we would like to thank all shareholders of the Company for their confidence and support in this capital increase. The management team and all employees are committed to building sustainable growth and return for our company, shareholders, and overall stakeholders through the development of business competitiveness, learning to adapt to new challenge continuously and conducting business under ethics.