PHILWEB Corp. is raising its authorized capital stock to P3.6 billion from P2.6 billion, with the increase intended to provide greater flexibility for future share issuances, including a subscription by Lance Gokongwei.
In a disclosure Thursday, the listed gaming technology firm said its stockholders approved amendments to its Articles of Incorporation last June 24 following board approval on April 8.
The amendments have to be approved by the Securities and Exchange Commission.
Under the amended articles, PhilWeb’s authorized capital will consist of 2.55 billion common shares and 1.05 billion preferred shares, both with a par value of P1 per share. This compares with its previous authorized capital of 1.85 billion common shares and 750 million preferred shares.
The increase effectively adds 700 million common shares and 300 million preferred shares to the company’s authorized capital.
PhilWeb said the amendments were intended to give it “greater flexibility” in managing its capital structure and to facilitate future corporate and strategic requirements.
The company specifically said the higher authorized capital would support its capital requirements, “including the issuance of shares pursuant to the subscription of Mr. Lance Y. Gokongwei and other capital raising activities.”
The disclosure, however, did not provide the size, price or timing of any proposed subscription by Gokongwei.
PhilWeb also amended provisions governing preemptive or preferential rights, allowing its board to expressly approve such rights as part of the terms and conditions of an issuance or disposition of shares.
Previously, the company's articles provided that stockholders had no preemptive or preferential right to subscribe to shares or convertible obligations issued or sold by the company. The amended provision gives the board greater discretion to grant such rights for particular share issuances.
PhilWeb said the amendments would not have an immediate material effect on its existing business or operations.
Shares of PhilWeb fell by P0.12, or 0.82 percent, to P14.46 each on Thursday.