After almost being delisted, PAL Holdings Inc.’s shares can now be traded in the Philippine Stock Exchange (PSE) starting today.
The bourse lifted the trading suspension it imposed in the company because of its noncompliance with the public float rule.
A disclosure to the local bourse on Thursday showed that PAL Holdings’ public float has increased to 10.22 percent, thus, meeting the 10-percent minimum public ownership (MPO) rule before the expiration of the deadline set by the exchange.
In support of the increase, a total of 2.4 billion new shares were subscribed by private placement investors.
“The private placement investors are unrelated to the company or any of its controlling stockholders, directors or officers,” PAL Holdings said.
In a memorandum posted by the PSE on its Web site, it said that “please be advised that the suspension on the trading of the company’s shares will be lifted on Friday, July 12, 2013, at 9 a.m.”
Two weeks ago, the PSE granted PAL Holdings, together with Nextstage Inc. and Philcomsat Holdings Corp., an extension of one month to comply with the public float rule. The firms said that they made transactions to sell shares to investors too comply with the rule.
On June 25, the Philippine Airlines’s operator, PAL Holdings, 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 MPO requirement of the PSE.”
The company then increased 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.
Madelaine B. Miraflor