Metro Global capital hike OK’d

THE Securities and Exchange Commission (SEC) has approved Metro Global Holdings Corp.’s capital stock hike to P5.0 billion, paving the way for a share offering to fund renewable energy projects.

Metro Global, in a disclosure on Friday, said the corporate regulator had greenlit the capital stock increase from P2.0 billion and a change in its primary purpose to allow it to acquire or invest in renewable energy businesses.

The amendments are expected to “improve the capital structure of the company and allow [it] to have unissued shares to be issued for purposes of raising funds ... to engage in the new business line of solar, wind and other renewable energy generation facilities.”

The SEC approval was issued on February 1 and certification was received four days later, the company said.

Metro Global filed the proposed amendments to its articles of incorporation in 2019 after securing the approval of its board of directors and shareholders in 2018.

Processing of the documents, however, was stalled during the pandemic. It resumed only in July last year after the government lifted the pandemic status, the company added.

Metro Global is set to seek the SEC’s approval anew for another proposed capital stock increase, this time to P10 billion.

The proposal to raise capital stock to P5.0 billion was approved by the company’s board and shareholders last year.

Metro Global said parent FilEstate Management Inc. (FEMI) would invest P1.25 billion via a subscription to 1.25 billion common shares, at P1 each.

The unsubscribed portion, equivalent to 3.75 billion shares will be offered to the public.

Proceeds from the issuance will be a “potential source of funding to finance the renewable energy projects, which the corporation intends to pursue,” the company said.

The public offering of the unsubscribed shares still has to be approved by the board, Metro Global said, adding that the timing would also depend on the date of regulatory approval of the proposed new capital stock increase.

Upon completion of FEMI’s subscription, the company said its public float would decrease to 7.5 percent but could increase again once the unsubscribed shares are offered to the public.