Thai Airways Soars 216% on First Trading Day After Five-Year Hiatus

 

Thai Airways International Public Company Limited (THAI) marked a spectacular return to the Stock Exchange of Thailand on Monday, with shares surging 216.26% on its first trading day after a five-year absence from the market.

 

The national carrier's shares opened at 10.50 baht, representing a dramatic increase of 7.18 baht from its closing price of 3.32 baht before delisting. 

 

The remarkable performance pushed the airline's market capitalisation to 290 billion baht, with trading volumes reflecting strong investor appetite for the rehabilitated carrier.

 

The first day of trading operated without ceiling and floor price limits, dynamic price bands, or auto-pause mechanisms, allowing share prices to move freely according to market forces of supply and demand.

 

The airline's return follows the successful completion of its business rehabilitation programme, during which Thai Airways converted outstanding debt into equity and raised over 76 billion baht from shareholders and employees. 

 

This restructuring transformed the company's previously negative equity position into positive territory, whilst reducing its debt-to-equity ratio from a precarious 12.5 times to a more manageable 2.2 times.

 

Notably, the airline achieved this restructuring without requiring creditors to accept haircuts on their debts, maintaining relationships with major financial and trade creditors. The company has established a clear debt repayment schedule extending through 2036.

Asadej Kongsiri, Director and Market Manager of the Stock Exchange of Thailand, described Thai Airways' return as "another significant milestone for Thailand's capital market, reflecting the business sector's potential for adaptation and recovery."
 

 

He emphasised the airline's strategic importance to the national economy, noting that the relisting represents "a new beginning for the organisation in creating long-term value for shareholders."

 

Chief Executive Officer Chai Eamsiri expressed pride in successfully steering the airline through its rehabilitation plan and back to market trading.

 

He attributed the success to collaboration across all stakeholders, including employees, management, and creditors.

 

The airline's operational performance has shown marked improvement, with an EBIT margin of 22.1% in 2024 demonstrating strong profitability.

 

Shareholders' equity has returned to positive territory at 55.439 billion baht.

 

Thai Airways has outlined ambitious expansion plans, targeting a fleet increase to 150 aircraft by 2033 and aiming to capture a 35% share of the international market by 2029. These targets reflect the carrier's confidence in sustainable growth following its successful restructuring.

 

Dithanop Vattanawakin, fundamental investment analyst at Krungsri Securities, highlighted the airline's strengthened financial position following rehabilitation.

 

He projects normal profits of approximately 20 billion baht, based on the company's performance in 2023 and 2024, which delivered normal profits of 26 billion baht and 21 billion baht respectively.
 

 

 

The analyst noted that capital restructuring has restored positive shareholders' equity to over 50 billion baht as of Q1 2025, alongside cash and cash equivalents of 120 billion baht. 

 

This liquidity position adequately covers current debt obligations of nearly 120 billion baht, scheduled for gradual repayment over the next 12 years.

 

Krungsri Securities has set a target price of 7.65 baht per share, based on an EV/EBITDA multiple of 4.5 times for Asian airline industry peers.

 

The analyst suggests that prices below this target present investment opportunities, whilst prices at or above the target may offer diminished appeal.

 

On its debut trading day, Thai shares ended at 10.30 baht per share, marking a slight dip from their opening price of 10.50 baht. The shares reached an intraday high of 11.00 baht per share.