Italpinas’ proposal to increase share capital gets the green light from the SEC
The Securities and Exchange Commission (SEC) has approved boutique real estate developer Italpinas Development Corp’s application. (IDC) to increase its authorized share capital, which it will use for future fundraising.
The company said the SEC had approved its request to amend its articles of incorporation to increase its authorized share capital to 700 million shares, divided into 1.3 billion common shares with a par value of 0. , 50 P and 100 million preferred shares of the same par value.
The number was an increase from the previous 377.99 million shares divided into 655.98 million common shares and 100 million preferred shares, both with a par value of 0.50 P.
“The proposed amendment to increase authorized share capital will provide IDC with more flexibility for any potential business opportunity in the future that would require a sufficient number of authorized and unissued shares that can be issued quickly,” the company said.
To meet the subscription requirement, the Board approved the declaration of stock dividends equivalent to between P100 million and P250 million in favor of all registered shareholders in proportion to their respective holdings, payable on a registration date which will be set by the president after the SEC approves the increase in its authorized share capital.
From January to September, the company’s net profit fell 39% to P28.27 million from P46.73 million last year.
Net sales fell 29% to P248.5 million from P353.34 million last year, which the company said was in part due to adherence to accounting principles related to accounting for sales.
“The company continued to expand its activities. On the other hand, control measures have been put in place to effectively manage costs and expenses. This has resulted in a decrease in general and administrative expenses, ”he said.
The company said it saw an 8% drop in rental income.
“There were cancellations in 2020 for defaulted accounts in which the corresponding collections were lost, so income for the business for the last year,” he said.
At the end of September, the company had total assets of 2.71 billion pesos, consisting mainly of receivables from the sale of condominium units, real estate inventory for sale and investment property.
Its properties for sale represent the remaining inventory of Primavera City phase 1 as well as the net cost incurred for the Primavera City phase 2 and Miramonti Green Residences phase 1 projects under construction.
The company has obtained development loans from Landbank of the Philippines for the construction of Primavera Residences Tower A, Bank of the Philippine Islands for Tower B, Development Bank of the Philippines for Primavera City phases 1 and 2 and also from Landbank for Miramonti phase 1.