Fresh from its acquisition of noted engineering school Mapua Institute of Technology, Petrofields Corp. takes a step further in redirecting its business focus through a change in corporate name and an increase in its capital stock to raise cash for its expansion.
Petrofields, one of the oil exploration firms under the Yuchengco Group of Companies, has advised the Philippine Stock Exchange of the change in its corporate name to iPeople Inc. although it will retain its stock trading symbol (PET) unless this is likewise amended.
"The change of name is in line with Petrofields' new business which deals principally with education under its newly-acquired school," a company statement said.
Petrofields acquired full ownership of MIT from the Mapua family in early March for a total consideration for P975 million. Under the terms, Petrofields' parent firm House of Investments will contribute P250 million as deposit for future subscription while the balance of P725 million will be funded partly by proceeds from the stock rights offering to Petrofields shareholders and through loans from banks with MIT shares as collateral.
Petrofields has completed the payment of P250 million last Dec. 21, 1999 and by July this year, the remaining P725 million, covered by irrevocable letters of credit (L/Cs), will be paid to MIT shareholders.
The entry of MIT into the Yuchengco camp not only diversifies the group's interests into education, but also opens up a possible money-making venture, particularly with MIT's strong hold on the much sought-after technology and engineering courses.
Because of this niche market, MIT is also a potential candidate for stock listing, following Centro Escolar University and Far Eastern University. Another college, computer education pioneer Systems Technology Institute, has expressed interest in undertaking an initial public offering (IPO) within the next two years.
However, iPeople has indicated it does not have any plans yet to list MIT either through an IPO or a backdoor listing. At present, the company is holding preliminary talks with foreign information technology firms to establish linkages in support of MIT's science courses.
iPeople will be increasing its authorized capital from P100 to P2 billion and engage in a rights offering and private placement deals in order to raise funds for MIT's expansion, which is hinged on a national and regional expansion to distinguish itself as the leading provider of technology-focused degree programs.
Among the new academic programs proposed for the coming school year include BS Computer Science, BS Information Technology, MS Geotechnical Engineering and PhD Chemical Engineering.