Connect with us

Hi, what are you looking for?

Economy

Cebu Pacific operator raises nearly P12.5B from stock rights offer

CEBU AIR, Inc., the listed operator of budget carrier Cebu Pacific, announced on Wednesday that it has successfully raised nearly P12.5 billion from its stock rights offering.

“The total proceeds raised from the offer amounting to P12,499,999,984.00 will be used to strengthen the company’s balance sheet,” Cebu Air told the local bourse.

It noted the amount raised would help the company address its financial liabilities, including repayment of an advance by JG Summit Philippines Ltd., aircraft operating lease payments, principal debt repayments, and passenger refunds, among others.

Cebu Air’s stock rights offering of 328.95 million convertible preferred shares had a par value of P1 per share set at the price of P38 per entitlement right.

The offer period, which started on March 3, ended on March 9.

Once the convertible preferred shares are issued,  Cebu Air would have a total of 929.26 million issued and outstanding shares divided into 600.32 million common shares and 328.95 million convertible preferred shares, the company said.

The listing date for the offer shares has been tentatively set on March 29.

On Friday last week, the company announced that its board approved a P16-billion, 10-year loan from local banks.

The loan will be used to fund the company’s capital expenditures and other general corporate purposes.

“The loan will also provide a cushion against unexpected working capital requirements that may stem from fuel price and foreign exchange rate volatility,” it also said.

Cebu Pacific currently operates less than a quarter of its pre-pandemic network at 32 domestic destinations as it runs half of its 73 aircraft.

Cebu Air shares closed 2.74% higher at P46.85 apiece on Wednesday. — Arjay L. Balinbin

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

THE SENATE on Monday ratified the Bicameral Conference Committee report on a measure that seeks to lower the minimum investment hurdle for foreign retailers...

Economy

The Philippines is one of 17 countries that have kept schools fully closed since the pandemic began, according to a report released by the...

Economy

Workers are busy cleaning in preparation for the restaurant’s reopening in Marikina City. — PHILIPPINE STAR/ MICHAEL VARCAS THE RESTAURANT industry is anticipating some...

Economy

EXCISE TAX collections from cigarettes jumped by 31% to P83 billion in the first seven months, with more than half coming from Philip Morris...

Investing

The world’s largest franchisor of home service brands, has announced the acquisition of Pimlico Plumbers, central London’s leading independent residential and commercial service and...

Economy

MEGAWORLD Corp. will be spending P40 billion to develop an eco-tourism township in Palawan in the next 10 to 15 years, Andrew L. Tan’s...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Economy

US President Joseph R. Biden, Jr., will rely on ally countries to supply the bulk of the metals needed to build electric vehicles and focus on...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.



Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!