By James A. Loyola
The Securities and Exchange Corporation (SEC) has approved the planned offering of Now Corporation of convertible preferred shares with detachable warrants to raise up to P1 billion.
Documents at the SEC show, the firm is selling 5 million redeemable and convertible preferred shares at P100 per share with an oversubscription option of another 5 million shares.
The preferred shares will have underlying common shares amounting to 25 million shares for P20 per share at a ratio of one preferred share to five common shares. The oversubscription option has the same number of underlying shares under the same terms.
The preferred shares will also come with 10 million detachable warrants to be issued free of charge at the ration one preferred share to two detachable subscription warrants with an oversubscription option of another 10 million warrants.
The warrants will have 10 million underlying common shares at the ratio of one warrant per common share with an oversubscription option of another 10 million shares under the same terms.
The company estimates that its net proceeds from the offer based on the offer price of Pl00 per offer share will be approximately P471.05 million without the Oversubscription Option, and P955.46 million with the Oversubscription Option.
The company intends to use a majority of the net proceeds from the offer partly to fund the capital expenditure of the expansion of the Fiber-in-the-Air, fiber optic network and for general corporate purposes.