Conglomerate PHINMA Corp. said Thursday it secured approval for its planned P1-billion stock rights offering (SRO) to fund expansion projects.
PHINMA said in a disclosure to the stock exchange the Securities Exchange Commission (SEC) issued the notice confirming that the P1-billion transaction is exempt from the registration requirements under the Securities Regulation Code.
The Philippine Stock Exchange (PSE) also approved the listing of the rights shares on the local bourse and the indicative timetable for the offering.
Under plan, PHINMA shareholders will be entitled to subscribe to 1 right share for every 5.56 to 6.17 common shares held at a price of P19.42 to P21.55. PHINMA shares closed at P20 each on Thursday.
Based on the approved timetable, offer period will run from Nov. 13 to 19, 2024, while the listing date will be on Nov. 27, 2024.
“PHINMA is committed to investing in businesses that deliver both strong returns for our shareholders and tangible benefits to society. 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,” said PHINMA chief financial officer EJ Qua Hiansen.
The company said it would use the proceeds to support initiatives of the PHINMA Construction Materials Group, particularly PHINMA Solar’s Green Energy Auction Program (GEAP) projects and Philcement’s modern cement manufacturing plant in Davao del Norte.
The SRO will also boost PHINMA Properties’ projects in emerging cities like Bacolod, Cebu, Iloilo and Davao and PHINMA Hospitality’s new TRYP by Wyndham hotel in the group’s newly-launched Bacolod township Saludad.
It will also bolster the group’s new ventures such as the Union Insulated Panel Corp.’s state-of-the-art facility in Porac, Pampanga and other opportunities to uplift the underserved market through socialized housing, food security, healthcare, and the green industry.
AB Capital & Investment Corp. will serve as the issue manager, book runner and lead underwriter for the transaction.
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