Nok Air (DD, Bangkok Don Mueang) has successfully raised THB1.7 billion baht (USD51.3 million) in fresh capital from its existing shareholders, including Thai Airways International (TG, Bangkok Suvarnabhumi).

A total of 1.135 billion new shares, offered to existing shareholders, were reportedly oversubscribed at a price of THB1.50 each (USD0.05). The low-cost airline will use cash to cover a total of nearly THB5 billion (USD15.1 million) in losses incurred from 2014 to June 2017.

The new share subscription was deemed necessary after a tepid response to a first round in May 2017 wherein the airline only managed to raise THB1.22 billion (USD36.8 million), some THB300 million (USD9.06 million) short of its original target. Thai Airways International had decided not to participate in the issuance citing an "unclear turnaround plan". As a result, its stake in Nok Air decreased from 39.2% to 21.57%.

The flag carrier's change of mind reportedly came after Piya Yodmani replaced Patee Sarasin as Nok Air's CEO, The Bangkok Post reported. As such, its contribution in this round amounted to THB367.5 million (USD11.1 million).

Nok Air was set up in 2004 to compete with Thai AirAsia (FD, Bangkok Don Mueang) with Thai Airways remaining its largest shareholder even after setting up its own domestic low-cost subsidiary, Thai Smile (WE, Bangkok Suvarnabhumi), in 2011.

Thai Airways itself has had a turbulent last few years, posting a total net loss of THB40 billion (USD1.21 billion) between 2013 and 2015, but returning to profitability with a THB47 million (US1.42 million) net gain in 2016.