Phinma Corporation (Stock: PHN), has received regulatory approval to move forward with its P1-billion stock rights offering (SRO). The SRO proceeds are aimed at supporting Phinma’s extensive investment and expansion projects across various sectors, directly impacting the lives of Filipino families. This funding will advance Phinma’s goals of growth while contributing to economic development and sustainability.
Phinma secured exemptions from the Securities and Exchange Commission (SEC) under the Securities Regulation Code on October 16, 2024, and the Philippine Stock Exchange (Stock: PSE) approved the listing of the new rights shares on October 21, 2024. According to the indicative timetable, shareholders of record as of November 8 will be eligible for one share for every 5.56 to 6.17 shares they hold. The offer period is scheduled from November 13 to 19, with the tentative listing date on November 27, 2024.
Allocation of Funds Across Core Sectors
The shares will be priced between PHP 19.42 and PHP 21.55 per share, with final pricing expected on October 31, 2024. AB Capital & Investment Corporation will manage the SRO, acting as the lead underwriter, bookrunner, and issue manager.
Phinma plans to allocate the P1 billion raised across its diversified portfolio, with strategic investments supporting growth in the following sectors:
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Construction Materials
Phinma’s Construction Materials Group will receive PHP 285 million to expand its footprint in renewable energy and materials production. PHP 170 million of this allocation is set for Phinma Solar’s projects under the Green Energy Auction Program (GEAP), while the remaining PHP 114 million will support Philcement’s new cement manufacturing facility in Davao del Norte. -
Hospitality and Real Estate
The SRO will provide PHP 250 million for Phinma Hospitality’s TRYP by Wyndham hotel project in Bacolod, situated within the newly launched Bacolod township, Saludad. Phinma Properties will also receive PHP 200 million, funding developments in emerging urban areas like Bacolod, Cebu, Iloilo, and Davao. These initiatives align with Phinma’s strategy to cater to growing urban populations, particularly in underserved markets. -
New Ventures and Corporate Growth
PHP 240 million will be allocated to explore new business opportunities and general corporate purposes. A portion of these funds will support Union Insulated Panel Corporation’s advanced manufacturing facility in Porac, Pampanga, designed to address the country’s growing demand for insulated building materials. This facility enhances Phinma’s ability to serve the expanding market for environmentally friendly construction solutions.
Phinma’s Impact and Growth Vision
In line with its mission, Phinma is committed to advancing sectors that yield strong returns for shareholders while creating meaningful benefits for Filipino communities. The funds raised through this SRO will enable Phinma to scale its impact on critical areas such as renewable energy, affordable housing, food security, and healthcare, positioning the conglomerate as a driving force for positive economic change.
The SRO also reflects Phinma’s commitment to sustainability and green energy initiatives, recognizing the importance of renewable energy investments. Phinma Solar’s ongoing projects, supported by GEAP, will help meet the increasing demand for clean energy in the Philippines. Additionally, Phinma’s investments in emerging urban centers underscore its commitment to balanced regional growth, enhancing its reach and influence across the country.
Phinma’s P1-billion stock rights offering marks a pivotal step in its expansion strategy, enabling the company to fund projects that drive value for shareholders and contribute to sustainable community development. Through investments in renewable energy, infrastructure, and emerging cities, Phinma reaffirms its dedication to improving Filipino lives while strengthening its financial foundation for