SEC okays PAL bid to issue more shares to comply with minimum public float

MANILA, Philippines - The Securities and Exchange Commission (SEC) has given the parent firm of national flag carrier Philippine Airlines (PAL) the green light to raise its authorized capital stock to issue more shares in compliance with the minimum public ownership requirement of the Philippine Stock Exchange (PSE).

PAL Holdings Inc. assistant corporate secretary Ma. Cecilia Pesayco informed the PSE that the proposed increase in its authorized capital stock to P30 billion from P23 billion was approved by the SEC last Friday.

 â€œPlease be advised that the company’s application for increase in authorized capital stock from P23 billion composed of 23 billion common shares with a par value of P1 per share to P30 billion divided into 30 billion common shares with a par value of P1 per share was approved by the SEC,” Pesayco stressed.

She added that the company already received the Certificate of Approval of Increase of Capital Stock from the SEC late Friday afternoon.

Just last week, PAL Holdings issued 2.415 billion common shares with a par value of P1 per share or a total consideration of P2.415 billion to certain investors via private placement.

The total amount of the transaction was placed at P2.415 billion or about 34.5 percent of the planned P7 billion increase in the company’s authorized capital. PAL has a public float of just 0.55 percent. With the private placement, the company’s public float is now over 10 percent.

Pesayco said the investors are unrelated to the company or any of its controlling shareholders, directors or officers.

 â€œNone of the said investors have subscribed to more than five percent of the resulting capital of the company, after the increase in capital. The said 2.415 billion new shares will hereafter be listed with the Exchange,” she clarified.

The PSE suspended the trading of seven firms including PAL Holdings last January due to their failure to meet the required minimum public ownership level of 10 percent. These companies were given until June 30 to comply with the public float requirement otherwise they would be delisted from the bourse.

PAL Holdings together with Philcomsat Holdings and Nextstage was given by SEC until July 31 to comply with PSE’s minimum public ownership requirement.