MANILA, Philippines - Southeast Asia Cement Holdings Inc. has obtained the Securities and Exchange Commission’s approval to raise its capitalization by P10 billion to cover its planned follow-on offering of shares.
In a disclosure to the Philippine Stock Exchange, Seacem said the SEC approved the increase in its authorized capital stock to P12.55 billion from only P2.55 billion.
The new capitalization consists of 35.87 billion shares with a par value of P0.35 apiece.
The company plans to conduct a follow-on offering in March to take advantage of the upswing in nickel prices. It aims to raise as much as P31.01 billion from the sale of up to 7.08 billion primary and secondary shares at a maximum offer price of P4.38 each share.
The final offer price will be set on March 13 while the offering is targeted to run from March 17 to 23. Listing date has been tentatively scheduled on March 27.
Aside from the increase in capitalization, the SEC approved Seacem’s request to change its corporate name to Global Ferronickel Holdings Inc. as well as increase the number of its directors from nine to 10.
The Platinum Group, headed by businessman Joseph Sy, acquired nearly 90 percent of Seacem via a backdoor listing, a strategy that involves a private firm acquiring a shell company in exchange for shares in that corporation.
It sells a range of low- to high-grade nickel ore sourced from its 4,376 hectare mine site in Surigao del Norte that has a measured and indicated ore of close to 65 million dry metric tons.
The Platinum Group also operates smelter plants in Iligan, Danao and Manticao.
Proceeds from the offering will be used to finance the group’s expansion initiatives and acquisition of mining assets.
Seacem became a shell company following the sale of its stake in listed Lafarge Republic Inc.