DFNN Inc. shareholders have approved a substantial increase in authorized capital stock, alongside plans to issue preferred shares and list them on the Philippine Stock Exchange, in a move that signals a potential expansion phase for the firm.
At a stockholders’ meeting on March 27, DFNN secured approval to raise its authorized capital stock to P2 billion from P500 million. The increase will expand common shares to 1.9 billion from 400 million, while preferred shares will remain at 100 million, all with a par value of P1 per share. The move remains subject to approval by the Securities and Exchange Commission.
The company will also amend its articles of incorporation to reflect the higher capital base and pursue the listing of the new shares on the Philippine Stock Exchange.
In parallel, shareholders approved the issuance of up to 100 million preferred shares from unissued capital stock, with final terms to be determined by the board.
These shares will likewise be listed, potentially providing DFNN with a new funding channel while offering investors fixed-income-like instruments.
Notably, a majority of minority shareholders waived their rights to a public offering requirement under exchange rules, effectively streamlining the capital-raising process and allowing the company greater flexibility in structuring the issuance.
The capital expansion could position DFNN to pursue growth opportunities, strengthen its balance sheet, or support new ventures, although specific use of proceeds has yet to be disclosed.
The move also reflects a broader trend among listed firms tapping equity and hybrid instruments to navigate a more volatile funding environment.
Pending regulatory approvals, the transaction is expected to enhance DFNN’s financial capacity while widening its access to capital markets.
