NOW Corp. has finalized the terms of its P1-billion follow-on offering (FOO), it disclosed to the stock exchange on Thursday.
The listed firm said its board of directors has approved the FOO with a base size of P500 million and oversubscription option of up to P500 million. The issuance comprises the sale of a total of 10 million preferred shares priced at P100 apiece.
Now Corp. tapped Unicapital, Inc. to be the offering’s issue manager, lead underwriter, and bookrunner.
The company will allow holders of the preferred shares to convert the security into common shares between its third and fourth anniversary, with the conversion price of P20 each.
Other than the preferred shares, the company will also be offering detachable subscription warrants, with a total of 20 million underlying common shares to be issued free of charge.
There will be a total of 10 million warrants, and an addition of up to 10 million for the oversubscription option. These will have a strike price of P10 during the exercise of the offer.
At the same time, the company’s board also approved a P50-million short-term loan with the LandBank of the Philippines. The final terms of the loan will be determined by the company’s executive committee.
Incorporated in 1996, Now Corp. has operations in the telecommunications, media, and technology sectors. The company works on a build-operate-transfer model, where it provides enterprise clients with their own private communications network independent of public telcos, equipped with broadband connectivity, a cyber security plan, and a collaboration software system.
Now Corp. returned to profitability in the first nine months of 2017 with P84,762, against a net loss attributable to the parent of P25.3 million in the same period in 2016. Revenues, meanwhile, more than doubled to P101.6 million during this period.
Shares in Now Corp. jumped 6.49% or 17 centavos to P2.79 each at the Philippine Stock Exchange on Thursday. — Arra B. Francia
