The Philippine flag carrier’s operator, PAL Holdings Inc., has sought for regulatory approval to increase its capital from P23 billion to P30 billion, to accommodate the entry of some independent investors.
The application for increase in capital was filed by the company to accommodate the respective subscriptions of independent investors to shares of stocks of PAL Holdings, and consequently, to comply with the minimum public ownership requirement of the Philippine Stock Exchange (PSE).
The company is increasing its capital from P23-billion divided into 23 billion common shares, with a par value of P1 a share, to P30-billion divided into 30 billion common shares, with a par value of P1 a share.
PAL Holdings President Ramon Ang earlier said that San Miguel Corp. and PAL Holdings will both unload shares from the flag carrier to comply with the 10-percent minimum public ownership rule of the PSE.
Ang then said that both parties are planning to reduce their ownership by 5 percent each, adding that PAL Holdings may even sell shares through a private placement.
As of now, PAL Holdings remains noncompliant with the public float with only 2.3-percent public ownership. Listed firms who are still noncompliant with the public ownership rule only have a few weeks to comply, before the bourse automatically delists them.
In 2012, PAL Holdings increased its authorized capital stock to P23-billion divided into 23 billion common shares, with a par value of P1 a share. This is an increase of P3 billion from its recent declaration.
Madelaine B. Miraflor