Integrated Microelectronics Inc., a unit of Ayala Corp., said Wednesday it is increasing its authorized capital stock to P3 billion from P2.45 billion to support expansion.
IMI said in a disclosure to the stock exchange its board approved the capital hike to P3 billion consisting of 2.8 billion common shares and 200 million preferred shares, both with par value of P1 each.
The proposed capital hike will be presented to stockholders for approval during the company’s annual meeting on April 13, 2018.
IMI said this would provide the company additional capital for business development initiatives and operational expenses.
IMI earmarked $75 million for 2018 capital expenditures, up 14.8 percent from $65.3 million it spent in 2017, primarily to support the expansion of its Philippine and overseas operations.
Under the plan, IMI will spend P2.39 billion to purchase additional machineries and equipment and P600 million to construct a new manufacturing facility in Serbia, new buildings and facilities and other building improvements in facilities in Bulgaria, the Philippines and Czech Republic.
Another P180 million will be allocated for costs associated with the maintenance of plant and other facilities and P300 million for investments in IT infrastructure.
Spending for this year’s capital expenditures will primarily come from the planned P5 billion stock rights offering.
IMI reported a net income of $34 million in 2017, up 21 percent year-on year while revenues jumped 29 percent to hit a record high of $$1.09 billion.
IMI is among the leading global manufacturing solutions providers in the world. Share price of IMI ended lower by 0.42 percent to P19.02 Wednesday.
