By VG Cabuag @villygc
The Securities and Exchange Commission (SEC) has approved the application of boutique property developer Italpinas Development Corp. (IDC) to increase its authorized capital stock, which it will use for future fundraising.
The company said the SEC has approved its application to amend its articles of incorporation to increase its authorized capital stock to 700 million shares, divided into 1.3 billion common shares with par value of P0.50 and 100 million preferred shares with 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 at a par value of P0.50.
“The proposed amendment to increase the authorized capital stock will provide IDC more flexibility for any potential business opportunities in the future that would need sufficient authorized and unissued shares that can be issued promptly,” the company said.
To satisfy the subscription requirement, the board approved the declaration of stock dividends equivalent to between P100 million and P250 million in favor of all stockholders of record in proportion to their respective shareholdings, payable on a record date to be set by the president after the SEC approves the hike in its authorized capital stock.
For January to September, the company’s net income fell 39 percent to P28.27 million from last year’s P46.73 million.
Net sales fell 29 percent to P248.5 million from last year’s P353.34 million, which the company said was partly due to the compliance with the accounting principles related to the recognition of sales.
“The company continued to expand its operations. On the other hand, control measures were implemented to effectively manage the costs and expenses. This caused the general and administrative expenses to decrease,” it said.
The company said it saw an 8-percent decline in rental income.
“There were cancellations in 2020 for default accounts in which the corresponding collections were forfeited, thus, an income to the company for last year,” it said.
As of end-September, the company had total assets of P2.71 billion composed primarily of receivables from sale of condominium units, real estate inventories for sale and investment properties.
Its real estate for sale represents remaining inventory of Primavera City phase 1 and also the net cost incurred for projects under construction of Primavera City phase 2 and Miramonti Green Residences phase 1.
The company has secured 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.