Phoenix Petroleum Philippines Inc. has increased its capital stock to P2.55 billion from P800 million.
This represents 2.5 billion common shares and 50 million preferred shares, both have par value of P1 per share.
In a disclosure to the Philippine Stock Exchange, Phoenix Petroleum said its board had allowed its shareholder, Phoenix Petroleum Holdings Inc. (PPHI), to subscribe to 193 million common shares, which formed part of the additional capital.
“The subscription agreement provided that the settlement of the subscribed shares shall be completed by end of 2012 on a date mutually agreed by the parties and at a price computed based on a 30-day weighted average market price as traded on the PSE immediately preceding the agreed settlement date, but in no case lower than the par value,” Phoenix Petroleum said.
The company was earlier allowed by its board to “conduct, do, perform and undertake capital and/or equity fund raising activities which are aimed at raising funds for future acquisitions or capital expenditure and operational requirement.”
The fund raising activities included sale of preferred shares and issuances of bonds and corporate notes.
Phoenix Petroleum is currently embarking on its most aggressive retail network expansion program to date, which will see the construction of about 100 gas stations this year.
Phoenix Petroleum AVP Raymond T. Zorrilla earlier said the company would spend about P500 million to put up 40 gas stations in Luzon, 20 in the Visayas and 40 in Mindanao this year. “This is to formalize our claim as the leading independent player in the country, in terms of both network size and market share,” he said.