TELECOMMUNICATIONS company NOW Telecom Co., Inc. is hoping to benefit from the amended Public Service Act (PSA), which allows up to 100% foreign ownership in public services, its top official said.

Listed firm NOW Corp. said its affiliate, NOW Telecom, recently secured the approval of the Securities and Exchange Commission (SEC) for an increase in authorized capital stock and the quasi-reorganization of its equity.

In a disclosure to the stock exchange, it said NOW Telecom “increased its authorized capital stock, increased the number of its authorized common shares from 14.59 million common shares to 952.09 million common shares, and lowered its par value from P100 per share to P1 per share.”

NOW Corp.’s direct equity ownership in NOW Telecom increased to 24.23% from 19%.

At the same time, the regulator certified the approval of the equity restructuring “to fully wipe out” NOW Telecom’s deficit as of Dec. 31, 2020.

NOW Corp. noted that the move “better positions” NOW Telecom to take on domestic and foreign equity investors in order to raise capital in support of its growth plans.”

NOW Telecom President and Chief Operating Officer Rene L. Rosales said that with the amended PSA and the recent approval from the SEC, the company “can now proceed with its growth plans, starting with its fund-raising efforts, including but not limited to tapping either the debt market or equity market, or both.”

Republic Act (RA) No. 11659, which President Rodrigo R. Duterte signed in March, amends the 85-year-old Commonwealth Act No. 146, or the PSA Act, easing restrictions on full foreign ownership of businesses in key sectors such as telecommunications, shipping, airlines, railways,  and subways.

NOW Corp. shares closed 22.56% higher at P1.63 apiece on Tuesday. — Arjay L. Balinbin

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