MANILA, Philippines - Listed Trans-Asia Oil and Energy Development Corp. has secured the approval of the Securities and Exchange (SEC) to double its authorized capital stock.
In a disclosure, Trans-Asia said the SEC has allowed the listed company to increase its capital stock to P8.4 billion from P4.2 billion.
The capital stock will be divided into 8.4 billion shares with a par value of P1 apiece.
Trans-Asia is selling as much as 1.627 billion shares to existing stockholders at P1 apiece.
The proceeds from the offering will be used to fund the increase of the corporation’s authorized capital and for general corporate purposes.
Net proceeds from the offering will be used by the company to partially finance its advances for subsequent conversion into equity and investment in a 54-megawatt (MW) wind energy project in San Lorenzo, Guimaras and the planned second 135-MW unit of the coal-fired power plant in Calaca, Batangas.
Other proceeds may be used to fund potential investments in other power project opportunities including privatizations of National Power Corp. and the Power Sector Assets and Liabilities Management Corp.
To date, the company owns and operates four plants with an aggregate production capacity of 186.4 MW. The bulk of energy sales came from contract customers, with excess output sold to the spot market.
Trans-Asia, which is 54.8-percent owned by Phinma Corp., is also into oil exploration, cement manufacturing and coal trading.