Now Telecom gained approval from the Philippines Securities and Exchange Commission to increase its authorised capital stock, a move to free up stock for foreign investors and finance expansion plans.
In a statement, Now Telecom president and COO says Rene Rosales said: “This strategic initiative of Now Telecom is envisioned to support its growth plans. The three-step equity restructuring better positions Now Telecom for investors both domestic and foreign to participate in its equity."
The executive noted the government recently passed a law to allow foreign investors to acquire 100% of shares in a public utility company.
Coupling this and its stock increase “Now Telecom can now proceed in its growth plans starting with its fundraising efforts including but not limited to tapping either the debt market or equity market, or both,” said Rosales.
The operator increased the number of its authorised common shares from 14.59 million to 952.09 million and lowered its par value from PHP100.00 per share to PHP1.00 per share.
It also added the SEC approved an equity restructuring which “wipe out” the company’s deficit as of December 31, 2020.
Rival operator Globe Telecom is hot on Now Telecom’s heels and is currently awaiting approval to increase its own authorised capital stock.
With approval, Globe plans to expand from PHP10.25 billion (US$196m) to PHP11.25 billion, a move to possibly also raise cash for expansion plans.
In a stock exchange filing, the operator said the move is “for business purposes” with little detail, and that it will follow up with an update after securing approval from its board.