Now Corp. taps capital market for expansion

Now Corp. looks to tap the debt and equity market to raise funds for its expansion plans.

In a disclosure to the Philippine Stock Exchange on Friday, Now said that it will tap the capital markets to help the company raise funds for capital expenditures, specifically to grow its fixed wireless broadband service.

This came after the Securities and Exchange Commission (SEC) on Thursday approved Now’s equity restructuring plan, which includes wiping out deficit totaling P402 million as of 21 December 2018, by reducing its surplus of P455 million.

The approval is crucial for the company, as it removes a major obstacle to fund-raising.

The company is also awaiting SEC approval to convert outstanding shareholders’ advances worth P264 million into equity. Once approved, the action will improve Now’s debt-to-equity ratio from 0.70:1 to 0.37:1. Post debt-to-equity, equity will account for 73 percent of total assets from 59 percent at present.

“Foundations for organic and fundamental growth are now being put in place in order for Now to excel in the industry as the fixed wireless internet provider of choice,” Now chief operating officer Rodolfo Pantoja said.

“We are banking on these changes as we strengthen further our financial health as we institute and excel in service excellence to our clients,” he added.

On Monday, the National Telecommunications Commission granted NOW an extension to install, operate and maintain state-of-the-art, efficient, effective and economical telecommunications network. This paved the way for the plan to grab the fourth telco slot in the Philippines.

This includes mobile telco, data and voice telco network, trunked radio dispatch communications system, digital trunked radio system and telecommunications operations.