NOW Corp. announced on Monday that it is planning to raise funds this year, with the proceeds partly going toward the company’s planned expansion projects.
“NOW Corp. intends to execute the transaction within the year to raise capital to strengthen and broaden its capital base as well as to promote a wider dispersion of the common shares of the company to a broad spectrum of public institutional investors,” the listed company told the local bourse.
The company plans to raise funds by way of top-up placement.
“NOW Corp. also plans to use the proceeds of the transaction to partially finance its planned expansion projects,” it added.
It said it appointed PNB Capital and Investment Corp. on April 8 as its issue manager, financial advisor and bookrunner for a “placing and subscription transaction.”
“The mandate covering the said appointment will be ratified by the board in a meeting called for that purpose. The terms and conditions of the transaction, when finalized, will likewise be promptly disclosed to the Exchange,” it also said.
On March 3, the company announced that its affiliate, NOW Telecom, Inc., received a favorable decision from the Anti-Red Tape Authority (ARTA) on its application for assignment of frequencies for the exercise of its cellular mobile telephone system provisional authority.
“An order of automatic approval was issued for the assignment in favor of NOW Telecom of 220 megahertz including 5G frequencies,” NOW Corp. said in a news release.
“With this ARTA ruling and award of frequencies, NOW Telecom aims to emerge as a formidable player in the telecom mobile industry,” said Rene L. Rosales, NOW Telecom president and chief operating officer.
NOW Corp. shares closed 9.79% higher at P3.14 apiece on Monday. — Arjay L. Balinbin