ISM sells shares, eyes new investors
Listed ISM Communications Corp. announced yesterday plans to raise at least P2.5 billion in a private share sale and to take on new investors, including the Udenna Group’s Dennis Uy.
ISM sought a voluntary trading halt yesterday ahead of the announcement, which came amid an almost 50-percent jump in its share price over the last two weeks. Trading of ISM shares will likely resume on Monday.
In its disclosure, ISM said its board had authorized the issuance of about 1.72 billion shares at a minimum price of P1.45 each.
It said the amount represented a 20-percent discount to ISM’s 60-day volume weighted price.
ISM is issuing 841.94 million treasury shares and 883.7 million unissued shares from its authorized capital stock.
ISM noted that it had secured Uy’s commitment to participate in the private placement deal. Uy is the founder of Udenna Corp., whose assets span petroleum, property, logistics, education and retail merchandising.
“ISM intends to use the proceeds of this issuance to fund the investment opportunities currently being pursued by management,” the company noted in its disclosure.
ISM said in its annual report that it has no ongoing operations and is primarily an investment holding company.
Its main asset is its 32-percent stake in German technology firm Acentic GmbH, which provides in-room entertainment services for hotels, serviced apartments and healthcare facilities. ISM also owns a minority position (1 percent) of Philippine Bank of Communications, its 2017 annual report showed.
Just before trading was halted, ISM shares jumped 13.46 percent to P2.36 per share on Friday.—MIGUEL R. CAMUS
