ISM Communications Corp., an information technology firm controlled by former trade and industry czar Roberto V. Ongpin, has raised the number of shares it will offer to stockholders but will still generate P655.55 million in sales proceeds.
In a notice to the Philippine Stock Exchange, ISM said it will now offer 65.66 million shares from the originally intended 25.21 million shares. Shareholders can buy one common share for every 1.92 common shares held as of a record date yet to be set by the company.
The shares to be issued will come from the latest increase in capital stock of ISM from P1.8 billion to P2.8 billion.
ISM’s major shareholders Ashmore Investment Ltd. and Philweb Corp., have committed to take up all shares left unsubscribed. At present, Ashmore owns around 31.2 percent of ISM while Philweb holds 17.64 percent.
Ashmore believes in the potential of ISM to grow into a leading player in the IT and multimedia telecommunication sectors. This will be Ashmore’s third investment in ISM since it underwent restructuring in 2002.
Ashmore, a major investment fund based in the United Kingdom, manages around $37.5 billion worth of funds.
Formerly Itogon-Suyoc Mines Inc., ISM now owns 77.7 percent of Eastern Telecommunications Philippines Inc. (ETPI), which provides fixed-line services such as broadband Internet and data transmission. Previously controlled by Cable & Wireless Plc.
ETPI is one of the oldest telecommunications companies in the Philippines.
ISM views ETPI as key to its long-term plan, started in 2002, to shift its business focus to operations such as pay-television, multimedia and information technology from mining.
ISM earlier said it was allotting P700 million to P800 million for the acquisition of a local telephone company and new technology for mobile Internet television in line with its goal of further growing its business.