Figaro approves huge authorized capital stock increase
Figaro [FCG 0.82 2.5%; 64% avgVol] [link] board of directors approved the increase of FCG’s authorized capital stock (ACS) from P660 million split into 6.6 billion common shares (P0.10/share par), to P1.34 billion split into 11.55 billion common shares (P0.10/share par) and 9.25 billion preferred shares (P0.02/share par).
The FCG board indicated that the sale of the preferred shares to related parties or non-parties would be made to “pay” for the broader ACS increase to satisfy the SEC requirements on ACS increases. FCG is owned by Jerry Liu, who also owns Cirtek [TECH 2.90 1.1%; 54% avgVol].
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For those that have followed the market for a few years, you probably have some level of respect for Mr. Liu as a savvy PSE market operator.
I don’t mean this to say a “good” operator, in the sense that I endorse investing in his companies (TECH in particular has had a rough life, price-wise), but that he knows his way around raising capital, juggling debt, and using the fundraising opportunities that being a listed company on the PSE allows.
There’s no info here to say whether FCG will sell that initial batch of preferred shares to Mr. Liu or one of his private companies, but that certainly is one of the plays that he has called in the past with TECH, which has four separate listed tranches of preferred shares on the PSE, with one tranche (TCB2B) that was sold exclusively to Mr. Liu’s private holdco.
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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.
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