TBGI is owned by businessman Arsenio T. Ng whose business interests range from communications to real estate development.
The capital increase is in preparation for the company’s initial public offering this year.
In a registration statement filed with the SEC last month, TBGI said it will offer to the public a total of 69.678 million new common shares, representing 33 percent of the firm’s common stock.
The shares will be sold at a price ranging from P1.14 to P1.48 per share, raising between P70.5 million and P90.5 million from the IPO. RCBC Capital Corp. has been tapped to lead underwrite the offering.
TBGI has earmarked 10 percent of the entire IPO for local small investors in compliance with securities rules.
Proceeds from the offering will be used for marketing promotions, working capital requirements and equipment acquisition.
The company’s objective is to provide Internet connectivity of rural communities throughout the country to enhance delivery of education, health care and livelihood programs.
In five years, TBGI expects to establish Internet connectivity for 1,500 schools and 500 hospitals.
TBGI believes that the Philippine market can reach a potential of 40 million Internet users in 10 years based on the 50-percent market penetration in developed countries like Hong Kong, Japan, South Korea, Singapore and Japan.
The Philippines has a very low market penetration of 2.4 percent of population using Internet.
Incorporated in 1995, TBGI holds a 25-year Congressional franchise for commercial telecommunications and television broadcasting operations. It also has an approved provisional authority to transmit radio signals to satellites granted by the National Telecommunications Commission. – Zinnia dela Peña