Philippines: Now Corp raising $29m to expand broadband internet business

Visual from company website

Now Corporation, a listed telecommunications, media, and technology company in the Philippines, is aiming to raise on a public offer a maximum of $29.7 million (P1.5 billion) and use it as capital for expanding broadband internet services.

Now disclosed on Wednesday (March 15) of filing applications with the Securities and Exchange Commission (SEC) and the Philippine Stock Exchange Inc (PSE), for the issuance of convertible preferred shares worth P1.5 billion.

“The net proceeds from the issue will be used by Now to support the expansion of its Fiber-in-the-Air broadband internet service, for research and development, capital expenditures and for other general corporate purposes,” Now said in its statement.

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The transaction sought includes issuance of redeemable convertible, non-participating, cumulative and non-voting Peso-denominated preferred shares.

Philippine Commercial Capital Inc, and SB Capital Investment Corp, the wholly-owned investment banking arm of Security Bank Corp, were mandated as joint issue managers, joint lead underwriters, and joint bookrunners for the transaction.

As and if dividends are declared by Now’s board of directors on the preferred shares, investors will have an annual dividend rate which is yet to be determined at the moment.

Now noted dividend shall take the form of common shares or cash, or a combination of both. Potential holders of the preferred shares are given the option to convert to common shares of Now at pre-identified anniversary dates after listing of the shares.

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“Any Preferred shares that remain unconverted after five years and six months from issue, listing date shall be redeemed by the company, at a redemption price equivalent to the offer price plus interest at the rate which is yet to be determined,” Now added.

Now is also engaged in software systems and services, IT manpower and resource augmentation, and is in partnership with duly enfranchised telecom and cable TV companies, broadband and wireless cable TV services.

Among its subsidiaries are J-Span IT Services Inc, Porteon SEA Inc, I-Resource Consulting International Inc, I-Professional Search Network Inc, and Softrigger Interactive Inc.

Now last traded at P3.04 per share on Wednesday (March 15).

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