TOP Frontier Investment Holdings Inc. intends to increase its public float beyond the present level of 11.81 percent.
“We are open to increase our public float,” Iñigo Zobel, the company’s chairman said during the firm’s stockholders’ meeting on Thursday.
Top Frontier is the majority shareholder of diversified conglomerate San Miguel Corp.
Zobel, who owns a chunk of Top Frontier’s equity, did not elaborate.
The minimum public float as mandated by the law is 10 percent.
The company recently issued some P25.88 billion worth of perpetual preferred shares, convertible to preferred shares, in favor of Bryce Canyon Investments Ltd., a British Virgin Islands firm.
Once the preferred shares are converted, it will increase Top Frontier’s free float level, Ramon Ang, the company’s president and chief executive officer, noted.
“We do not know right now how much will be the increase, but the intention is to make it as much as possible so it will be widely held by the public,” Ang said.
Top Frontier owns 66.2 percent of SMC. It listed on the PSE by way of introduction in January 2014, which did not require the company sell shares.
In the first quarter of the year, Top Frontier posted a net income of P14.6 billion or more than double the P6.13 billion it made a year earlier. Consolidated sales revenue hit P159.62 billion, marginally higher than in 2015.
Although most businesses posted revenue increases, these were offset by the lower revenue of Petron Corp.
The group’s consolidated operating income reached P22 billion, a 40 percent jump year-on-year, mainly attributed.
Wholly-owned subsidiary Clariden Holdings Inc. holds several mining permits in the country, including mineral production sharing agreements for the Nonoc Nickel Project, Mt. Cadig Nickel Project, and Lo-oc limestone project
Ang said he is not worried by recent pronouncement of Environment and Natural Resources Secretary Gina Lopez, a staunch anti-mining advocate, since most of the mines that the company owns are all old firms, and therefore have valid and existing permits.
“We still have valid MPSA [mineral production sharing agreement], so there’s no problem. I think DENR [Department of Environment and Natural Resources] is strict on the issuance of new permits to new firms. But they are not shutting down the existing mining firms that are compliant,” Ang said.