Low-Cost Carrier Nok Air Could Face Possible SET Delisting

Low-cost carrier Nok Airlines is at risk of being removed from the Stock Exchange of Thailand (SET) if it does not improve its financial performance and present its 2022 financial statements within a designated time frame, the Thai bourse reported.

Nok is on the edge of potential removal from the listing as it has maintained a negative equity for two consecutive years, and has not managed to address the underlying reasons for potential delisting, as mentioned in a SET announcement.

The deadline for Nok to address the grounds for possible delisting is set for September 8, 2024, as noted in the announcement.

Furthermore, Nok has not adhered to the time frame stipulated for the submission of its financial reports. The firm is mandated to present its reports by October 2 of the following year, failing which it might be delisted, the exchange cautioned.

According to SET policies, companies listed have a span of three years to rectify the reasons for potential delisting and an additional two years to demonstrate the necessary criteria to restart trading.

“If the listed company cannot eliminate the causes of delisting or repossess the required qualifications in order to resume trading within the specified periods, the SET will consider delisting the securities of the company accordingly”, the exchange noted.

In a document submitted to the SET on August 31, Nok communicated that the delivery of financial reports of Nok and its affiliate entities for December 31, 2022, will be postponed from August 31 to September 30 of the current year.

“The delay was due to a reconciliation of data in the inventory system software and the auditor is reviewing the stock balance. As a result, the company needs more time to carefully review inventory account recording and information to ensure accuracy”, stated the airline.

Based on the data from SET, the airline reported a net deficit exceeding 1.4 billion baht in 2021, succeeding a substantial loss of 7.99 billion baht in 2020, with revenues dwindling to 6.35 billion baht from 6.73 billion baht.

Nok reported deficits for the years 2017 to 2019 amounting to 1.85, 2.78, and 2.05 billion baht, respectively.