ISM seeks to raise P655M from rights offer
Information technology firm ISM Communications Corp. is eyeing to raise P655 million from a stock rights offering to finance its expansion this year.
"The corporation will use these funds to take advantage of certain IT-related business opportunities it is presently negotiation," it said.
The company said its board approved to offer shareholders one share for every five shares owned at a price of P0.026 per share, the median price of the company's shares at the local bourse during the last 10 trading days.
It did not provide a record date and timetable for the rights offer.
ISM Communications said affiliates Ashmore Funds and PhilWeb Corp., a publicly-listed Internet gaming firm, would subscribe to the rights offer. Ashmore currently owns 31.2 percent of the company, while PhilWeb owns another 17.64 percent.
"Ashmore and PhilWeb also committed to take up any unsubscribed shares in the offer," it said.
The capital-raising activity is up for ratification by stockholders on August 1.