PHILWEB Corp. said it had received approval from the Securities and Exchange Commission to reclassify 750 million unissued and unsubscribed common shares to preferred shares.
“The reclassification was approved in order for the company to have flexibility in raising capital,” PhilWeb said in a disclosure to the exchange on Tuesday.
Article 7 of the company’s articles of incorporation was amended to reflect the changes.
PhilWeb has a capital stock of P2.6 billion, which now consists of 1.85 billion common shares with a P1 par value per share and 750 million preferred shares worth P1 apiece.
The dividend rate of the preferred shares will be determined by the board of directors. It may also be converted into common shares.
PhilWeb said there are no subscribers of the preferred shares as of Tuesday.
Stocks of PhilWeb at the local bourse closed unchanged on Tuesday at P2.68 apiece. — Keren Concepcion G. Valmonte