PHINMA Corp.’s planned P1-billion stock rights offering (SRO) has been greenlit by the Philippine Stock Exchange (PSE).
“This stock rights offering will fuel our growth, strengthen our balance sheet and empower us to make an even greater impact on Filipino families and communities,” Phinma Chief Financial Officer EJ Qua Hiansen said.
Phinma will offer up to 51 million common shares, priced at between P19.42 and P21.55 apiece, to be drawn from its unissued capital stock.
Shareholders on record as of November 8 are entitled to one offer share for every 5.56 to 6.17 common shares held. Pricing is set to be released on October 31, while the rights offer period will be from November 13 to 19.
The tentative schedule for listing on the local bourse is on November 27.
Last September, Phinma Treasurer Nanette Villalobos said that the SRO would help support projects such as the Philcement Davao terminal, Union Insulated Panel factory, GEAP II Phinma Solar projects, Bacolod Township-Saludad, TRYP Bacolod and new ventures.
“We are optimistic that the second half will be more favorable for our businesses. Our focus remains on expanding our sales initiatives and efforts, aiming to increase market share by targeting key areas with strong potential,” she also said.
According to a preliminary prospectus, Phinma expects to raise about P975 million in net proceeds from the offer, to be allocated to three of its business segments.
Its construction materials group (CMG) will get P285 million, the hospitality group will receive P250 million and the property development group will have P200 million.
Around P240 million will be allocated for investments in new ventures and/or for general corporate purposes, with Union Insulated Panel Corp. also set to receive up to P210 million for a new state-of-the art facility in Porac, Pampanga.
Disbursement of the proceeds will be made between this year and next, the company added.
Of the P285 million allocation for CMG, P170 million will be used for Phinma Solar’s 58 projects while the remaining P114 million will fund the development of a modern cement manufacturing plant in Davao del Norte.
Phinma Hospitality’s P250 million will fund the development of the TRYP hotel in Bacolod while Phinma Property Holdings Corp.’s projects will receive P200 million to shape the urban landscape in emerging cities like Bacolod, Cebu, Iloilo and Davao.
“This expansion is not limited to the property sector but also includes exploring opportunities in the education space. We chose our portfolio very intentionally, looking at where we have strengths and competitive advantage, and aligning them with the market needs,” Villalobos said.
“We will utilize the SRO proceeds to enable Phinma to continue to grow in the future,” she concluded.
Phinma tapped AB Capital & Investment Corp. to serve as the issue manager, book runner and lead underwriter for the transaction.
Phinma shares were down 70 centavos, or 3.38 percent, at P20 apiece on Thursday.
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