IRC Properties, Inc. is hiking its authorized capital stock to P10.5 billion to raise funds for its future projects.
In a disclosure to the stock exchange on Wednesday, the company said its board of directors approved the increase in its authorized capital stock to P10.5 billion from P1.5 billion.
The increase will comprise of P9.5 billion worth of common shares with a par value of P1 each. The company said at least 25% of the shares will be issued through private placement with a price range from P1.10 to P1.40 each, depending on the terms and conditions to be set by IRC’s executive committee.
The remaining P1 billion will consist of preferred shares at P10 per share. These will be non-voting shares with rights to dividends at 1.5% per annum, and may be converted to IRC common shares.
IRC said the increase in authorized capital stock will be for the “increase in funds for current and future projects of the company.”
In an earlier disclosure this week, IRC said it has submitted an unsolicited proposal to the Makati City government for a mass transportation system project. Securing approval for the construction, operation, and maintenance of the project will follow the process as stated under Makati’s Public-Private Partnership Code.
Aside from the proposal, IRC’s board of directors has also authorized the company to execute and enter into a joint venture agreement necessary for the mass transport system project.
The submission of the proposal came on the heels of the change in the company’s leadership, with businessman Antonio L. Tiu being appointed as the company’s president and chief executive officer last May 17.
Mr. Tiu is also president and CEO of AgriNurture, Inc. and Greenergy Holdings, Inc.
Incorporated in 1975, IRC originally engaged in the acquisition, reclamation, development, and exploration of land, forests, minerals, oil, gas, and other resources. It ceased exploration activities in the 1970s following the global recession, and bounced back in 2013 as a property developer.
The company currently has a residential project in Binangonan, Rizal called Casas Bauhinia which offers residential units for the lower income segment.
IRC saw its net income attributable to equity holders of the parent jump 407% to P25.4 million in the first quarter of 2018, versus the P5.06 million it booked the year before. This was supported by a 47% uptick in revenues to P75.17 million during the period.
Shares in IRC dropped by two centavos or 1.69% to close at P1.16 each at the Philippine Stock Exchange on Wednesday. — Arra B. Francia