ISM Communications Corp. is raising at least P2.5 billion through a private placement to a number of individuals, including Davao-based businessman Dennis Uy.
ISM Communications said in a disclosure to the stock exchange its board authorized the executive committee to issue 841.945 million treasury shares and the remaining unissued shares of 883.730 million through a private placement at a minimum price of P1.45 apiece.
“One of the investors who has committed to participate in the private placement is Mr. Dennis A. Uy, the founder of the Udenna Group of Companies,” ISM Communications said.
The offering price of P1.45 per share is equivalent to a 20-percent discount to the 60-day volume weighted average price of ISM Communications.
ISM Communications said it planned to use the proceeds from the issuance to fund the investment opportunities currently being pursued by management.
The group of former trade minister Roberto Ongpin, whose nephew Eric Recto currently sits as chairman and chief executive of ISM Communications, had recently been forming the alliance with Uy, a known supporter of President Rodrigo Duterte.
Uy was recently been elected the director in two of Ongpin-led firms—Atok Bing Wedge Inc. and Alphaland Corp.
Ongpin earlier was tagged by President Duterte as one of the oligarchs in the country that his administration wanted to destroy.
Uy owns several listed companies, namely Chelsea Logistics Holdings Inc., Phoenix Petroleum Philippines Inc., 2GO Group Inc. and Philippine H2O Ventures Corp.
ISM was originally incorporated as Itogon-Suyoc Mines Inc. to engage in the mining business.
In 2002, the stockholders of ISM approved a restructuring plan for the company, which involved the change in corporate name to its present name and in the primary purpose to engage in the business of telecommunications, multimedia and information technology.
On November 11, 2016, the Securities and Exchange Commission approved the amendment of the articles of incorporation of ISM to reflect its primary purpose as a holding company.
Share price of ISM Communications on Friday climbed 13.4 percent to P2.36 per share.