SEC okays Now’s plan to sell shares worth P1-billion
The Securities and Exchange Commission approved the P1-billion share sale of Now Corp., a listed company controlled by the Velarde family.
Now Corp., according to documents filed with the SEC, will issue 5 million in preferred shares with an over-allotment of another 5 million at an offering price of P100 apiece.
Unicapital Inc. will serve as the sole underwriter for Now’s preferred shares offering.
The company plans to use the net proceeds from the offering to fund the expansion of fiber-in-the-air network this year in preparation for its bid to become the country’s third major player.
Now, through unit Now Telecom, is an enfranchised telecommunications company. It is considering the possibility of entering into a partnership with strategic domestic and foreign partners to join the planned bidding for the country’s third telecommunications company.
Now said it planned to undergo an equity restructuring by using the additional paid-in capital created by the preferred shares offering, which will wipe out the company’s capital deficit.
Once the capital deficit is wiped out, Now said it would be able to declare and pay dividends to stockholders.
“Once the company obtains the necessary approvals and implements the equity restructuring plan, the company can resume paying dividends from future cash flows as they no longer have to use the same to eliminate retained earnings debit balances,” Now said.
“This will also allow the management flexibility to invest the surplus back to grow the business,” it added.
Now’s fiber air service covers internet-dependent industries, such as educational services, healthcare, hotels and restaurant industries and media with clients like The Manila Broadcasting Co., The Philippine Daily Inquirer, Manila Bulletin, Marco Polo Ortigas, Manila Medical Center and Capitol Medical Center.