Melco Resorts and Entertainment (Philippines) Corp., the developer and operator of integrated resort and casino City of Dreams Manila, is increasing authorized capital stock to P11.9 billion ahead of an equity offering to finance expansion and pay down debt.
Melco said in a regulatory filing it would hike its authorized capital stock to P11.9 billion divided into 11.9 billion shares with a par value of P1 per share from P5.9 billion.
“The reason for the proposed increase in the authorized capital stock of the corporation and the resulting amendment of the corporation’s articles of incorporation is to enable the corporation to tap into any potential funding raising opportunities, in the form of equity offering with a view to using the proceeds of such fund raisings to repay outstanding indebtedness, fund growth and expansion, for general corporate purposes and/or for such other purposes to be determined by the Board,” Melco said.
The planned capital hike is one of the agenda for shareholders approval during company’s annual stockholders meeting slated on June 26.
Melco said aside from the capital hike, it would also seek shareholders approval for the conduct of an equity offering including the issuance of share via top-up placement or private placement.
The final terms and conditions of the top-up offering including the number of shares to be sold and the issue price will be determined by the company’s board of directors.
Melco said in the event that shares amounting to at least 10 percent of the total issued and outstanding capital stock of the corporation were issued during the equity offering, it would seek a waiver of the requirement to conduct a rights or public offering by the majority of the outstanding shares held by the attending minority shareholders.
Share price of Melco has been on an upward trend since the start of the year on significant improvement in the company’s finance performance. From P3.86 per share at the close of 2016, share Melco more than doubled to P9.90 as of Wednesday.
Melco reported a net income of P148.6 million in the first quarter, a sharp turnaround from P1.135-billion net loss recorded in the same period last year.