FLAG carrier Philippines Airlines Inc. (PAL) said on Tuesday that its application to decrease its authorized capital stock from P20 billion to P13 billion had been approved by the Securities and Exchange Commission (SEC).
In a disclosure to the Philippine Stock Exchange, PAL said that the decrease in its authorized capital stock will be implemented via a decrease in par value per share from P0.20 to P0.13.
PAL also said that its application to increase par value per share from P0.13 to P1.00 without increasing the authorized capital stock and thereby decreasing the number of shares authorized from 100 billion shares to 13 billion shares, has also been approved by the SEC.
“The move to decrease authorized capital stock will allow the flag carrier to declare dividends and attract more investors,” PAL earlier said.
“The reduction is part of PAL’s quasi-reorganization which, once effected, will eliminate the deficit which accumulated due to the company’s losses prior to its recent three-year period of profitability,” PAL added.
Shares of PAL Holdings closed on Tuesday marginally down 0.19 percent at P5.16 each.