MANILA, Philippines – PHINMA Corporation (PHINMA) announced on Wednesday that it will conduct a ₱1 billion stock rights offering (SRO) this year to support its investment and expansion initiatives aimed at improving lives.
The offering, approved by the company’s Board of Directors, will consist of primary common shares to be listed in the fourth quarter of 2024.
“The stock rights offering reflects investor confidence in PHINMA’s growth prospects while allowing us funding flexibility as we pursue investments that will make lives better,” said EJ A. Qua Hiansen, PHINMA’s Chief Financial Officer.
The SRO is intended to strengthen PHINMA’s capital base and complete the Group’s consolidation efforts, enhancing its ability to provide essential services through its diverse business segments, including education, construction materials, property development, and hospitality.
PHINMA Properties recently launched a township in Bacolod City, reinforcing its commitment to regional development. The 21-hectare mixed-use development, Saludad, is the latest in PHINMA Properties’ efforts to expand its presence beyond Metro Manila.
The PHINMA Construction Materials Group, comprising Union Galvasteel Corporation, Philcement Corporation, and PHINMA Solar Energy Corporation, is also advancing its growth projects.
PHINMA Solar is preparing for the installation of projects secured under the government’s second Green Energy Auction Program (GEAP II).
Meanwhile, Philcement is concluding talks for the acquisition of Petra Cement Inc. through its 70% owned subsidiary, Philcement Mindanao Corp., and has signed joint venture agreements with Anflo Group’s ANFLOCOR to build a modern cement manufacturing plant in Davao del Norte.
Additionally, Union Insulated Panel Corp., PHINMA’s newest business unit, has broken ground on its manufacturing facility in Pampanga, targeting the country’s food and climate crises.
“With this offering, PHINMA can better support its investments in current and upcoming business ventures—allowing us to cater to more Filipino families and communities. The Group will become stronger and better prepared for what lies ahead because of this,” said Ramon R. del Rosario, Jr., PHINMA Chairman and Chief Executive Officer.
AB Capital & Investment Corporation will serve as the issue manager, book runner, and lead underwriter for the transaction.
PHINMA also reported consolidated revenues of ₱10.37 billion from January to June, a 17% increase from the same period last year, driven by higher enrollment in PHINMA Education and the consolidation of PHINMA’s property and hospitality businesses. The company’s consolidated net income for the first half of 2024 stood at ₱170.93 million.
Business News Asia