TWO subsidiaries of listed property developer Italpinas Development Corp. (IDC) have secured the approval of their directors and stockholders for a capital increase to strengthen their operations.
In a regulatory filing on Thursday, IDC said its majority-owned unit IDC Homes, Inc. has obtained approval for an increase in capital stock to P200 million from P1 million, ensuring the parent firm’s control over the subsidiary.
IDC Homes is engaged in the design and development of sustainable buildings for socialized and affordable homes.
“IDC subscribed to 25% of the increase in capital stock of IDC Homes, and paid up 25% of such subscription, or P49.75 million, through conversion of advances to IDC Homes in the amount of P10.28 million into equity, and actual cash payment of P2.16 million,” the listed firm said.
“The subscription will ensure that the subsidiary remains majority-owned and controlled by IDC. At the same time, since 20% of the amount to be paid up will be conversion of advances already made to the subsidiary, there is minimal current cash infusion,” it added.
According to IDC, the higher capitalization seeks to bolster the operations of IDC Homes.
“Prior to the increase, IDC Homes has outstanding capital stock of 10,000 shares. After the increase, outstanding shares will be 1.99 million shares,” it added.
Meanwhile, IDC said in a separate disclosure that the board and stockholders of its majority-owned unit IDC Prime, Inc. approved the increase in its capital stock to P300 million from P1 million.
“IDC subscribed to 30% of the increase, and paid up such subscription, or P90 million, in full,” the listed firm said.
“IDC subscribed to 30% of the increase in capital stock of IDC Prime, and paid up such subscription, or P90 million in full through exchange of real property valued at P50.56 million for equity, and conversion of advances to IDC Prime in the amount of P39.44 million into equity,” it added.
IDC Prime is engaged in the design and development of “green” buildings.
The parent firm said the increase in capitalization is also meant “to strengthen IDC Prime and allow IDC to assign development projects, and concentrate on exploring other locations, negotiating additional joint ventures, and tapping into diverse funding sources.”
“Prior to the increase, IDC Prime has outstanding capital stock of 10,000 shares. After the increase, outstanding shares will be 3 million shares,” IDC said.
On Thursday, shares of IDC at the local bourse ended unchanged at 77 centavos each. — Revin Mikhael D. Ochave