IPVG may sell more shares

by Kristine Liu
BusinessWorld – Corporate News 8/S1
http://www.bworldonline.com/BW110408/content.php?id=045
Nov. 4, 2008

LISTED IPVG Corp. will raise funds by selling stocks to shareholders, apart from ongoing talks with potential investors.

In a disclosure to the exchange, IPVG said its board had approved a plan to sell 57 million shares at a peso each. "We are looking at two scenarios for the shares — either as a private placement or rights issuance," IPVG Chief Executive Officer Enrique Y. Gonzalez said yesterday.

"We have not yet determined which [route we are taking] since we will need to reconvene and discuss [the matter] at our next board meeting," he added.

IPVG earlier said the shares that will be sold would be taken from the company’s authorized capital, which it increased to P1 billion in June from P800 million. The company said it would use the money to fund its expansion and invest in new equipment.

"The increase in authorized capital stock is for IPVG to strengthen its capital base, increase stockholder equity, and allows us to issue more shares down the road when market conditions improve," Mr. Gonzalez told BusinessWorld.

IPVG mainly provides IT services to other telecommunication providers and the corporate enterprise sector. Its services include data center capacity, network systems and E-mail backup, network security disaster recovery, remote access and Internet telephony.

Last week, the stock exchange extended the trading suspension on IPVG shares pending negotiations between the listed firm and potential investors.

The company volunteered to have the trading of its stocks suspended to avoid price movements based on misinformation and undue speculation. — KJRL