In a disclosure to the PSE, Fil-Hispano said the rights offering will begin next month subject to the completion of certain documentary requirements of securities regulators.
Under the rights offer, each stockholder is entitled to subscribe to one common share for every two shares held as of record date yet to be set by the company. Each share will be priced at P1, a sharp discount to the present market price and from the P3.95 per share price in a secondary offer last November.
Shares of Fil-Hispano closed at P7.40 per share yesterday.
Proceeds from the rights offer, amounting to P300 million, will be used to fund its planned expansion and acquisitions.
As worldwide spending on business process outsourcing services is on the upswing, Fil-Hispano is considering further expanding to new markets like Europe, Australia and Asia to build a much stronger platform for growth.
Fil-Hispano, the first and only call center listed on the PSE, is considering tapping opportunities in Malaysia, Singapore, China, India, Australia, and the United Kingdom to optimize capacity utilization and generate a higher return on assets.
The company’s objective is to maximize the use of call centers that are now primarily used to service US clients, and in turn, increase return on assets. At present, 80 percent of Fil-Hispano’s call center business is coming from the US.
Fil-Hispano is also looking at acquisitions, mainly in the medical and legal transcription outsourcing business.
From only 700 call center seats in 2003, Fil-Hispano’s call center unit Advanced Contact Solutions Inc. now has a total of 2,800 seats as of end-March this year and is looking at ending the year with 3,000 call center seats with its continued expansion.
ACS currently has three world-class facilities at the Citibank Center in Makati City, the Allied Bank building in Makati, and in Cabuyao, Laguna. It is looking at Cubao, Libis, Alabang and Ortigas as future sites for expansion.
With the expansion in place, Fil-Hispano is expecting its net income to more than double this year to around P270 million from P119.5 million in 2004. Revenues are also seen to grow to P1.3 billion from only P647 million last year on existing call center contracts alone.
For the first quarter this year, Fil-Hispano reported a net income of P51.4 million or more than three times the previous level due to the continued expansion of its call center operation.
To reflect the change in its business, Fil-Hispano which is known as a ceramic tile maker, plans to change its name to Paxys Inc., a contraction of the words "Pacific Systems".