Embattled water utility Manila Water Co. Inc. is increasing its capital base to P4.4 billion from P3.5 billion with a possible equity offering.
Manila Water said in a disclosure to the stock exchange its board of directors approved the proposed capital stock to P4.4 billion, which includes an additional 900 million common shares.
The water utility firm said the board of directors also approved an increase in the unissued common shares from 300 million shares to 900 million shares.
The shares will then be issued “for cash, properties or assets” to carry our the corporate purposes of the company.
Manila Water plans to sell the shares at a minimum price of P10 apiece. The company is expected to raise at least P9 billion from the same 900 million shares at the minimum price of P10.
No other details were provided on the timetable of the planned issuance of common shares.
Manila Water on Friday requested for the voluntary trading suspension of its shares in view of material events that could occur between January 31 and February 3.
“The request is made to ensure that our shareholders and the investing public would have equal access to information and are afforded the opportunity to consider this in their trading activities,” Manila Water said.
Share price of Manila Water closed at P12.61 on Thursday.
Manila Water is the water concessionaire for the east zone of Metro Manila.
The government is currently reviewing the water contracts of Manila Water and Maynilad Water Services Inc. due to alleged onerous provisions.
The Metropolitan Waterworks and Sewerage System earlier assured President Rodrigo Duterte that the regulator and its two water concessionaires would exert all efforts to comply with his order to execute a new concession agreement after 2022.
MWSS administrator Emmanuel Salamat said the agency had given Manila Water and Maynilad Water Services Inc. the chance to renegotiate, come up with and agree on the new terms of their own concession agreement.
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