Lorenzo Shipping Corporation has secured regulatory approval to double its authorized capital stock to P2 billion, a move that paves the way for the capital infusion of National Marine Corp. (NMC) and further capital raising to fund expansion.
The listed shipping company said the Securities and Exchange Commission approved its application to increase authorized capital from P991.18 million to P2 billion, along with amendments to its articles of incorporation and by-laws to align with the Revised Corporation Code.
The increase expands Lorenzo Shipping’s capital base to 2 billion common shares with a par value of P1 each, from the previous 991.18 million shares.
Part of the expanded capital has already been subscribed by National Marine Corp. (NMC), a majority shareholder and subsidiary of A. Magsaysay, Inc.. NMC subscribed to 252.2 million shares worth P252.2 million, of which P211.8 million has been paid, providing an initial infusion of fresh funds.
The move was first approved by the company’s board in May 2025 and subsequently ratified by stockholders representing at least two-thirds of outstanding shares in August, satisfying corporate and regulatory requirements.
The capital buildup is expected to enhance the company’s financial flexibility, allowing it to pursue growth opportunities and improve its capacity to weather industry volatility. For a shipping and logistics firm, stronger capitalization is particularly critical amid fluctuating fuel costs and evolving trade dynamics.
While only a portion of the increased capital has been subscribed so far, the transaction signals investor support and leaves room for additional equity raising as needed.
Market observers note that capital increases of this scale typically aim to fund expansion, reduce debt, or support operational improvements—key priorities as logistics firms adapt to shifting supply chain demands.
With regulatory approval now in place, Lorenzo Shipping gains greater headroom to tap capital markets and advance its long-term strategy.
