PAL Holdings Inc., the parent company of the country’s flag carrier Philippine Airlines Inc., may raise as much as P16.25 billion from a planned stock rights offering scheduled within the year.
PAL Holdings said in a regulatory filing it would seek the approval of shareholders to increase its capital base to P20 billion from the current P13.5 billion.
PAL Holdings said it would offer at least 25 percent of the increase in the capital stock, or not less than 1.625 billion common shares, by way of a rights offering to shareholders.
PAL’s parent firm could potentially raise P16.25 from the planned rights offering based on the company’s closing price of P10 on Friday.
“The prospectus or other offering circular to be hereafter prepared and submitted to the Securities and Exchange Commission and the Philippine Stock Exchange as required by law shall contain, among others, all the commercial terms of such offering as may hereafter be determined by the Board of Directors after due consultation with its financial and investment advisers,” said PAL Holdings.
PAL Holdings plans to complete the rights offering before the end of 2019.
ANA Holdings Inc., the parent company of Japan’s All Nippon Airways, earlier invested $95 million for a 9.5-percent stake in PAL Holdings.
ANA Holdings acquired the shares from Trustmark Holdings Corp., family firm of billionaire Lucio Tan and the largest shareholder of PAL Holdings.
ANA Holdings said the investment in PAL would help its mid-term corporate strategy that started last year and would last until 2022, where it aims to expand its international group network by forging partnerships with foreign airlines.
PAL said it would embark on a major re-fleeting program once the expansion of Ninoy Aquino International Airport started.
The airline has allotted $650 million for 2019 capital expenditures to fund aircraft acquisition.
The airline expects to receive six aircraft this year, comprising of Airbus 350, two Airbus 321neo and two Q400.
PAL flies to 43 international and 35 domestic destinations using 95 aircraft, and owns one of the youngest fleets in the industry with an average age of just five years.