Originally, PetroEnergy Resources Corporation has an authorized capital stock of Pesos One Billion (P1,000,000,000) divided into One Billion Common Shares with a par value of One Peso (P1.00) per share. From the total authorized capital stock, 674,028,849 shares had been issued to the Stockholders.
In 2003, the Company implemented an 8 for 1 reverse stock split to eliminate the company's fiscal deficit, to be able to declare dividend and to achieve a share value when listed at the stock exchange.
Consequent to the restructuring, the company's authorized capital stock has been decreased to Pesos 330,000,000 valued at One Peso per share, of which 84,254,000 has been issued to and subscribed by its existing stockholders.
CAPITAL RESTRUCTURE
In 1999, through a series of restructuring steps, the shareholders of Petrofields received 1 share of what is now iPeople and 7 shares of what is now PetroEnergy for every shares of Petrofields that they owned.
While the shares of Petrofields originally had a par value of one centavo, the par value of the shares was later increased to one peso per share.
In 2003, PetroEnergy approved and implemented an 8 to 1 reverse stock spilt. This was carried out :
to eliminate the company's fiscal deficit
to be able to declare a dividend
to achieve a share value that is attractive for listing at the stock exchange
These two actions, together with the change of the par value from one centavo to one peso per share, meant that a stockholder who originally owned 914 shares of Petrofields back then now own 1.14 shares of iPeople and 1 share of PetroEnergy.
Back in 1999, the Petrofields shares were trading at PhP 0 .002 per share. That meant that 914 shares then had a market value of PhP 1.828. This is the benchmark against which the stockholders of the old Petrofields can compare if their 1.14 shares in iPeople plus 1 share in PetroEnergy have appreciated in value.
At the time of listing of PetroEnergy on August 11, 2004, iPeople shares are posted at PhP 1.48 while that of PetroEnergy at opening bell was PhP 3.00 per share. Hence at that particular moment, the original 8 shares of Petrofield or iPeople have appreciated from PhP 1.828 (1999 price level) to PhP 4.68 per share.
