Now Corp. is hiking its authorized capital stock to P1.86 billion to raise funds for capital expenditures.
In a disclosure to the stock exchange on Monday, the company said its board of directors “unanimously” approved the increase in its authorized capital stock to P1.86 billion from P1.50 billion.
The capital stock will comprise of 2.57 billion common shares with a par value of P0.70 each and 60 million redeemable, convertible, non-participating, and non-voting preferred shares with or without detachable warrants with a par value of P1 per share.
“The dividend rate of the preferred shares shall be fixed by the board of directors. The subscribers to the preferred shares shall be entitled to the payment of dividend,” Now Corp. said.
The company said the increase in authorized capital stock will be “for capital expenditures, working capital, and other general corporate uses as well as additional investment in an affiliate.”
In an earlier disclosure, Now Corp. said it had partnered with Vietnam’s Viettel Business Solutions Corp. to offer information and communications technology (ICT) products and services in the country.
The Philippines is Viettel’s 11th overseas market, according to Now Corp. Viettel currently operates in Vietnam, Laos, Myanmar, Cambodia, Burundi, Tanzania, Mozambique, Cameroon, Peru, and Haiti.
The two firms will be exploring opportunities in digital transformation consulting services, artificial intelligence, data analytics, and cybersecurity.
Now Corp. affiliate Now Telecom Co., Inc. announced last month that the National Telecommunications Commission (NTC) had “extended” its provisional authority to install, operate, and maintain a nationwide mobile telecommunications system.
The extension is not specific to 3G mobile communications technology, but can extend to 4G and 5G technologies, the company said.
The NTC said the extension comes with conditions, which include the infusion of additional capital of at least P1.9 billion based on the company’s first two years’ capital expenditure of P6.3 billion as submitted and approved by the Securities and Exchange Commission.
Shares in Now Corp. on Monday closed 0.82% lower at P4.85 apiece. — Arjay L. Balinbin