Supermarket operator Puregold Price Club Inc. is increasing its authorized capital stock to P5 billion from P3 billion in preparation for possible investment opportunities in the future.
Puregold said in a disclosure to the stock exchange its board approved the proposed capital hike in a meeting held on Feb 20.
The company will submit the proposed higher capital to shareholders for their approval during the annual meeting in May.
Puregold said the company was left with just around 100 million shares in the unissued portion in its capital satock after a recent top-up placement.
The increase in the authorized capital stock will prepare the company in case there is a need or opportunity to raise funds in the future.
“The company is just getting ready if there are good opportunity in the future. We are very near our maximum already for authorized capital. So far we have no plans for equity capital raising,” said Puregold investor relations head John Hao.
Puregold in January raised P4.69 billion through an overnight placement of shares. The transaction involved the sale of approximately 104 million Puregold shares at P45 apiece.
The sale share represents 3.8 percent of Puregold’s total issued and outstanding capital stock.
Puregold chairman Lucio Co, who was the sole selling shareholder, also signed a subscription agreement to purchase the same number of shares at the same price.
The company plans to use the net proceeds from the fund raising activity to fund capital expenditures related to store expansion and other general corporate purposes.
The grocery chain operator this year plans to open 25 Puregold stores and four S&R Membership warehouse outlets.
The Puregold Group had 397 stores nationwide as of end September 2018, comprising of 345 Puregold outlets, 16 S&R membership shopping warehouses and 36 S&R New York Style restaurant stores.
Puregold, one of the country’s biggest retailers, has been opening 25 Puregold stores annually and successfully put up outlets in areas outside Metro Manila.
Share price of Puregold on Thursday rose 1.5 percent to P48.79.
