Nimit Langsuan, a 54-storey residential development, is set to be built on Lang Suan Road near Lumpini Park.

The share price of financially beleaguered Pace Development Plc (PACE) fell Thursday following a substantial rise on Wednesday after the company embarked on a capital increase through a rights offering of new shares.

PACE shares closed on the Stock Exchange of Thailand Thursday at 0.67 baht, down 0.03 satang, in trade worth 198 million baht.

The slight fall could be attributed to a profit-taking strategy by investors, said a source who requested anonymity.

This was in stark contrast to Wednesday's rise of nearly 21% after Pace had announced the introduction of new shares on Feb 20.

The number of additional shares stands at 7.4 billion, with the new capital valued at 11.5 billion baht. The par value is one baht per share, while the subscription price is 50 satang per share.

The recent rise in share price could be attributed to how investors have regained confidence in Pace's business operations after its rights offering, the source said. Wednesday's share price upsurge could also be attributed to a possible takeover of Pace property projects by King Power International Group.

A source in the property sector said it is likely that King Power International Group, Thailand's leading travel retail group, will take over Pace's residential projects.

One of the key reasons is that Vichai Srivaddhanaprabha, King Power's chairman and chief executive, is fond of locations around Lang Suan, Chidlom, Phloenchit and Wireless Road.

"He is a regular customer of luxury condominium projects in these locations," the source said. "He bought a whole floor of Nimit Langsuan and some units on 98 Wireless Road, a super-luxurious condominium project that recently achieved the highest record price per square metre of 800,000 baht."

Nimit Langsuan is one such super-luxury residential project that Pace put up for sale to shore up its ailing finances.

With sales value of over 7 billion baht, Nimit Langsuan will have 53 storeys and 183 units, which sold out during the launch period three years ago.

"Mr Vichai may want Nimit Langsuan's plot because it is in a prime location on Lang Suan Road, facing Lumpini Park," the source said. "If he gets the project, he may give customers a refund and keep the plot for himself."

The source said the project is worth buying because the land cost of the plot, which Pace acquired four years ago, is lower than 2 million baht per square wah, while a recent transaction on Lang Suan Road late last year was 3.2 million.

Earlier, Pace executed a memorandum of understanding for negotiations on sale of the Nimit Langsuan Project and 53 residential units in the Ritz-Carlton Residences Bangkok, set within the MahaNakhon skyscraper, with Sansiri Plc.

Pace had earlier extended the due diligence period to Feb 5, 2018, but Sansiri requested an extension. Pace declined that request, saying the initial period was sufficient.