PSE okays Phinma’s P1-B stock rights offering

Conglomerate Phinma Corp. is all set to raise P1.1 billion from its stock rights offering next month, allowing it to beef up capital and pursue expansion plans.

The Philippine Stock Exchange said in a notice on Thursday it had approved Phinma’s application to list up to 51.5 million common shares for up to P21.55 each. This is a 4.10-percent premium over its closing price of P20.70 on Wednesday.

The final price will be set on Oct. 31. Phinma will offer the shares from Nov. 13 to Nov. 19, with the listing tentatively scheduled on Nov. 27.

“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,” Phinma chief financial officer EJ Qua Hiansen said in a statement.

Based on its Oct. 17 preliminary prospectus, Phinma will set aside P285 million of the proceeds for its Construction Materials Group (CMG), which includes Phinma Solar.

A total of P170 million will be used to fund projects won under the Department of Energy’s Green Energy Auction Program.

The remaining P114 million for CMG will be used to support the development of a modern cement manufacturing plant in Davao del Norte province.

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Phinma Hospitality will get P250 million to develop a hotel in the newly launched Saludad township in Bacolod City.

Phinma Properties will likewise get around P200 million to develop projects in Bacolod, Cebu, Iloilo and Davao, among others.

At the same time, parent firm Phinma will use P239.56 million to invest “in new ventures and/or general corporate purposes.”