Now Corp plans P1.5 B preferred share offer

MANILA, Philippines - Listed information technology (IT) firm Now Corp. is planning to raise P1.5 billion from the sale of preferred shares next month, its CEO Mel Velarde said.

The funds would be used to finance capital expenditures for the company’s broadband business.

Last Feb.21, Now filed an application with the Philippine Stock Exchange to list 15 million convertible preferred shares; up to 500 million underlying common shares of the convertible preferred shares; and 30 million detachable warrants and 30 million underlying common shares of the warrants.

SB Capital and Philippine Commercial Capital Inc. are the joint issue managers, joint bookrunners and joint lead underwriters for the offer.

Now is investing in the broadband business as it looks to take advantage of the growing demand for the technology by enterprises.

Velarde said he expects the broadband business as well as the IT business to help drive revenue growth for the company.

He said the award of the P57.53 million judiciary e-mail system project of the Supreme Court to Now earlier this week would also contribute to the firm’s revenue this year.

The project which Now will undertake with joint venture partner Accent Micro Technologies Inc., involves email and collaboration for 7,000 users;  audio/video conferencing implementation set-up; system administration and end-user training; as well as technical support and maintenance services.

Last year, Now’s revenues reached about P115 million to P120 million.