MANILA, Philippines - The Securities and Exchange Commission has approved the planned P122.14 million stock rights offering of Island Information & Technology Inc. (formerly Island Mining & Industrial Corp.)
In its registration statement filed with the SEC, IIT said it will offer 12.21 billion common shares at their par value of one centavo. These shares will account for 71.43 percent of the issued and outstanding common shares of the company after the offer.
IIT said the shares will come from the increase in its authorized capital stock from P50 million to P500 million.
Under the pre-emptive rights offer, company shareholders can buy 2.5 shares for every one common share held.
AB Capital & Investment Corp. has been tapped as issue manager and lead underwriter for the rights offering.
Proceeds from the share issue will be used to acquire a controlling stake in Admiral Container Depot Inc., which services the storage, handling and hauling/ship-out requirements of different entities such as shipping lines, freight forwarders and other container yards. After the offer, IIT will own 88.61 percent of Admiral Container.
Admiral Container will utilize the fresh equity to expand its operations specifically to acquire new equipment and fund its working capital requirements.
According to IIT, the development of container yard depots is an integral component of the country’s infrastructure development program.
“The company believes that the establishment of cargo management services will support the trade activities of the country as the current trend shows a sustained growth of shipment volumes of goods and products imported into and exported out of the Philippines,” IIT said.
Admiral Container currently leases a total land area of 10,562.18 square meters within the Manila Harbour Center Complex.