Vulcan plans P550-M private place to raise public float By JAMES A. LOYOLA East Coast Vulcan Corporation (formerly Vulcan Industrial & Mining Corporation) is raising P550 million private issuance of new shares to comply with the Philippine Stock Exchange’s 20 percent public float requirement. ECVC’s public float fell below the minimum 20 percent required after a backdoor listing transaction and a subsequent capital hike resulted in the dilution of minority shares. In a disclosure to the PSE, the firm said it is offering 550 million new private placement shares at the subscription price of P1.00 per share with the aim of raising its public float so the bourse can lift the suspension on the trading of its shares. At least 10 percent of the total subscription price shall be payable in cash upon subscription, and the balance shall be payable within one year from the date of the subscription in cash or property acceptable to the Corporation. The subscription and issuance of the 550 million new shares shall result in the increase of the subscribed and issued capital stock from 6.63 billion shares to 7.18 billion shares. The subscription proceeds shall be used for the operations of the Company, business development, repayment of advances or acquisition of mining rights. Last June 1, 2023, the trading of the shares of ECVC was suspended by the PSE due to its non-compliance with the required minimum public ownership under the Exchange’s existing rules and guidelines. This is after the firm increased its authorized capital stock from P4 billion to P12 billion. On July 1, 2021, Vulcan disclosed that it entered into a Memorandum of Agreement with the majority stockholders of East Coast Mineral Resources Company Incorporated (ECMRC) represented by Hilario G. Pagauitan and Sofia G. Pagauitan (the HGP Group) for the latter’s subscription to 5.18 billion shares of Vulcan to be issued from the increase in authorized capital stock. The PSE made a determination that said transaction is covered by the Exchange’s Rules on Backdoor Listing. Following such determination, pursuant to the Guidelines on Minimum Public Ownership Requirement for Initial and Backdoor Listings dated August 3, 2020, VUL is required to have at least 20 percent public float from actual issuance or transfer of shares which triggered the application of the Backdoor Listing Rule. In view of the stock issuance, the Company’s public ownership level fell below the 20 percent prescribed minimum percentage. Under the Amended Rule on Minimum Public Ownership of the Exchange, listed companies which become non-compliant with the prescribed minimum public ownership “shall be suspended from trading for a period of not more than six months and shall be automatically delisted if it remains non-compliant with the MPO after the lapse of the suspension period.”