EEI Corp., a listed construction firm, said Wednesday it plans to raise P2 billion from the issuance of preferred shares via a private placement.
EEI said in a disclosure to the stock exchange its board approved the proposed issuance of 20 million preferred shares which will come from its unissued preferred shares.
The preferred shares will be cumulative, non-voting, non-participating, non-convertible, redeemable and non-reissuable.
The dividend rate was set at 6.75 percent per annum payable quarterly.
“The conduct of an equity fund raising by way for private placement allows EEI to raise funds in a most expeditious and efficient manner, with the least cost to EEI,” the company said.
It plans to use the proceeds from the fund-raising activity to strengthen its balance sheet, retire working capital loans, fund future projects and for general corporate requirements.
The preferred shares will not be listed on the Philippine Stock Exchange. The company hired RCBC Trust Corp. as investment manager for this deal.
The last time that EEI issued preferred shares was in 2021 wherein it raised P6 billion.
EEI registered a net income of P62.7 million in the first nine months of 2024, a turnaround from the P292-million net loss in the same period last year.
Revenues slipped by 7.2 percent to P11.3 billion.
EEI said that at the end of the third quarter, the company’s unworked portion of existing contracts remained strong at P42.25 billion.
It completed six projects in the first nine months and acquired eight new ones in addition to its 35 current projects.
EEI said it was preparing for a robust inflow of additional projects that it expects to secure and be awarded from the fourth quarter of 2024 towards 2025.
EEI said it remains focused on improving project execution, operational efficiency and commercial approach in both local and overseas operations.
