SEC greenlights Now Corp.'s preferred share offer

The Securities and Exchange Corporation (SEC) has approved the planned offering of Now Corporation of convertible preferred shares with detachable warrants to raise up to R1 billion.

Documents at the SEC show, the firm is selling 5 million redeemable and convertible preferred shares at R100 per share with an oversubscription option of another 5 million shares.

The preferred shares will have underlying common shares amounting to 25 million shares for R20 per share at a ratio of one preferred share to five common shares. The oversubscription option has the same number of underlying shares under the same terms.

The preferred shares will also come with 10 million detachable warrants to be issued free of charge at the ration one preferred share to two detachable subscription warrants with an oversubscription option of another 10 million warrants.

The warrants will have 10 million underlying common shares at the ratio of one warrant per common share with an oversubscription option of another 10 million shares under the same terms.

The company estimates that its net proceeds from the offer based on the offer price of Rl00 per offer share will be approximately R471.05 million without the Oversubscription Option, and R955.46 million with the Oversubscription Option.

The company intends to use a majority of the net proceeds from the offer partly to fund the capital expenditure of the expansion of the Fiber-in-theAir, fiber optic network and for general corporate purposes.