Nok Air (DD, Bangkok Don Mueang) has issued a notification of changes in its shareholding structure, confirming that major shareholder Thai Airways International (TG, Bangkok Suvarnabhumi) has reduced its stake to 21.57%, following a rights offering last month in which THAI did not participate.

The two next largest shareholders, brothers Thaveechat Chulangkul and Nuttapol Chulangkul holding 15.64% and 13.29% respectively, are now effectively the largest shareholder group with a combined share of 28.93%.

Nok Air successfully raised its registered capital in May through the issuance of new shares. Despite THAI choosing not to take part, the offering was oversubscribed, raising Nok's capital from THB625 million (USD18.3 million) to THB1.41 billion (USD41.2 million). The cash injection was needed after a disappointing 2016 saw a net loss of THB2.8 billion (USD81.8 million). Interestingly, Nok CEO Pattee Sarasin, also did not participate, diluting his stake down to 1.29%.

News site Prachachat quotes an anonymous source as saying that Nok Air is working towards forming a joint venture with a foreign airline, narrowing the field down to Singapore Airlines (SQ, Singapore Changi) or a Chinese carrier.

"Nok Air wants potential business partners," said the source, adding that a strategic partner would be expected to take a stake of around 25%.