NOW Corp. plans to offer up to P1 billion worth of preferred shares to finance the expansion of its fiber-in-the-air service.
Based on a disclosure to the Philippine Stock Exchange (PSE), the company plans to sell 5 million preferred shares worth P500 million, with an oversubscription option of another P500 million or a total of P1 billion.
The initiative is still pending for approval by the Securities and Exchange Commission.
According to the disclosure, the preferred shares are “redeemable, convertible, cumulative, nonparticipating and nonvoting.”
“The company intends to use the net proceeds from the offer partly to fund its expansion of fiber-in-the-air broadband service and for general corporate purposes,” the filing read.
The broadband service, initially exclusive to corporate clients, was made available to retail customers in certain residential areas late last year.
Budding third telco operator Now Corp. saw profits ballooning by almost threefolds during the first quarter of the year on the back of lower expenses and a slight increase on its top line.
The listed multimedia company reported it booked P3.53 million in net income, about 248 percent higher than the P1.01 million it registered a year prior.
In the same comparative periods, revenues inched up by 3.4 percent to P33.85 million, from P32.73 million, while expenses dropped by a faster 9.04 percent to P28.85 million, from P31.72 million.