Technology

NOW shares jump after affiliate secures CMTS permit

Shares of businessman Mel Velarde-led NOW Corp. surged 49.79% Monday following the extension of the provisional authority granted to affiliate Now Telecoms to install and operate a cellular mobile telephone system (CMTS) nationwide.

NOW opened at P2.68 and closed at P3.58 per share, up by P1.19 from Friday’s close as investors welcomed the entry of a new player on the mobile market.

READ: Mel Velarde’s NOW gets provisional authority to operate mobile network

A total of 172.18 million shares worth P535.37 million changed hands.

READ: NOW Corp. expands broadband service

The grant of PA is subject to a number of conditions, including the infusion of additional capital
of at least P1.9 billion. The amount represents 30% of NOW Telecoms’ total capital expenditure requirement for the fist two years amounting to P6.3 billion.

READ: Mel Velarde ups stake in 5G aspirant Now Corp.

NOW Telecoms must also accelerate the installation of broadband data service in the suburban and rural areas.

READ: NOW Corp. P1B preferred share offering gets SEC approval

The company is also preparing the rollout of its fifth generation network to compete with industry giants PLDT-Smart, Globe and newcomer DITO.

To fund its massive expansion, NOW Telecoms is listing by way of introduction.

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