Now Corp. to raise fresh capital

MANILA, Philippines — NOW Corp. is looking to raise fresh funds this year to strengthen and broaden its capital base and finance its expansion projects.

In a stock exchange filing yesterday, NOW said it has appointed PNB Capital and Investment Corp. as issue manager, financial advisor and bookrunner for the placing and subscription transaction of NOW shares.

The company said terms and conditions of the planned transaction would be finalized by its board.

“NOW intends to execute the transaction within the year to raise capital to strengthen and broaden its capital base, as well as to promote a wide dispersion of the common shares of the company to a broad spectrum of public institutional investors,” it said.

NOW said it also intends to use the proceeds of the proposed transaction to partially finance its planned expansion projects.

In October last year, NOW announced a partnership with Viettel Business Solutions Corp., a member of Vietnam’s Viettel Group, to provide ICT products and services in the Philippines.

NOW currently has access to broadband internet business called Fiber Air, which provides broadband internet connection via fixed wireless mainly to the enterprise segment.

Part of the customer segments of NOW includes banking, logistics, education, hospitality and even government.

The publicly listed firm is part of the NOW group of Mel Velarde, which previously expressed strong interest to venture into television and radio broadcasting.

The group’s broadcasting affiliates have applied for radio frequencies and have ongoing applications for direct terrestrial television broadcast.

Affiliate NOW Telecom, which is looking to position itself as the country’s fourth major telecommunications player, earlier revealed plans to spend $713 million for its five-year 5G fixed wireless access business plan.

Together with its advisor, NOW Telecom last year said it is also assessing the suitability of listing its shares on the local bourse or within the region, given its medium-term business plan.