MANILA, Philippines - Pryce Corp. is infusing fresh capital after its board approved a P240-million increase in its authorized capital stock.
In a disclosure to the Philippine Stock Exchange, Pryce said its authorized capital stock will be hiked from P2 billion to P2.24 billion.
The infusion of fresh capital into the company is intended to accommodate a new investor, it said.
“The increase was approved in anticipation of contemplated placing and subscription transaction/s under negotiation, the details of which will be disclosed in due time,” Pryce said.
At the same time, its board also cleared company president Efren Palma to execute documents pursuant to and in accordance with placing and subscription transactions.
This capital raising activity will allow the company leg room to pursue its expansion plans, Lexter Azurin, research head at Unicapital Securities Inc., said in a phone interview.
“With additional capital raising, this gives a further boost for its expansion,” he said.
Earlier this year, Pryce announced its plans to strengthen its liquefied petroleum gas (LPG) brand, PryceGas, with a P1-billion investment in 20 refilling plants.
The expansion, which will be undertaken by its subsidiary Pryce Gases Inc. (PGI) and its unit Oro Oxygen Corp. (OOC), is aimed to widen its LPG brand’s reach in Luzon.