Chelsea to hike authorized capital stock to P3.5 billion

CHELSEA LOGISTICS and Infrastructure Holdings Corp. is seeking to increase its authorized capital stock to P3.5 billion.

In a disclosure to the stock exchange on Monday, the listed company said it had applied for the amendment of its articles of incorporation to hike its authorized capital stock from P2 billion to P3.5 billion.

It is also seeking the regulator’s approval for the change in the feature of its preferred shares from non-convertible to convertible preferred shares.

The Dennis A. Uy-led firm said the application was filed with and received by the Securities and Exchange Commission on Jan. 22.

The increased authorized capital stock will be divided into two classes of shares: the 3.49-billion common shares with a par value of P1 per share and the 10-million non-voting, convertible, redeemable preferred shares with a par value of P1 per share.

The changes are intended “to accommodate additional subscriptions to the shares of the corporation to finance its current and future projects and for additional working capital,” Chelsea Logistics said.

The company recently reported a 2020 nine-month revenue of P3.32 billion, 35.5% lower than the previous year’s figure.

It swung to an attributable net loss of P2.60 billion for the nine months through September 2020, a reversal from the attributable net income of P19.95 million it reported in 2019.

Chelsea Logistics shares closed 1.69% higher at P4.80 apiece on Monday. — Arjay L. Balinbin