In a filing on Thursday, PHINMA said the fundraising exercise was approved by the Securities and Exchange Commission and the Philippine Stock Exchange.
A stock rights offer allows existing shareholders the option to buy additional shares, usually at a discounted price. If shareholders choose not to buy the new shares, these shares can be sold to other investors.
The rights offer shares will be priced on Oct. 31 this year while the offer period is tentatively scheduled to run from Nov. 13 to 19. The target listing date is Nov. 27 this year.
Management’s view
“PHINMA is committed to investing in businesses that deliver both strong returns for our shareholders and tangible benefits to society,” said PHINMA chief financial officer Edmund Alan A. Qua Hiansen.
“This stock rights offering will fuel our growth, strengthen our balance sheet and empower us to make an even greater impact on Filipino families and communities,” he added.
Use of proceeds
Funds will be used to support PHINMA Construction Materials Group’s projects, including PHINMA Solar’s GEAP ventures and Philcement’s Davao del Norte plant.
It will also support PHINMA Properties’ projects in cities like Bacolod, Cebu, Iloilo, and Davao, along with PHINMA Hospitality’s TRYP by Wyndham hotel in Bacolod.
Additionally, it will boost new ventures like Union Insulated Panel Corp.’s Porac facility and other opportunities in socialized housing, food security, healthcare, and the green industry.
PHINMA tapped AB Capital & Investment Corp. as the issue manager, book runner, and lead underwriter for the deal.
