IRC Properties, Inc. is doubling its capital base to raise funds for expansion.
In a disclosure to the stock exchange on Thursday, the property developer said its board of directors approved the increase in authorized capital stock to P3 billion from P1.5 billion.
The capital stock hike will facilitate the issuance of shares through private placement at the price of P1.40 per share.
The terms and conditions will be determined by the company, subject to the stockholders’ approval and compliance with the applicable laws, rules and regulations.
Earlier this week, IRC Properties entered into a P241.92-million subscription agreement with Aggregate Business Group Holdings, Inc. The latter will subscribe to 172.80 million common shares of IRC at P1.40 apiece.
The real estate firm’s main asset is its 2,200-hectare property in Binangonan, Rizal. However, up to 70% of the land has various claimants.
In 1991, the Supreme Court affirmed previous decisions by the Court of Appeals and the Regional Trial Court confirming the validity of IRC’s titles over the Binangonan property, but ordered it to consider claimants who had paid real property taxes.
Over the long term, IRC plans to build retail and office developments on the property to serve the needs of residents.
IRC was originally involved in oil exploration and drilled two wells in Southern Mindoro and the Sulu Sea, but was forced to cut down on these activities when a global recession hit in the late 1970s.
It acquired the Binangonan property in 1978.
Shares of IRC shed a centavo or 0.85% to close at P1.16 apiece on Thursday. — Krista Angela M. Montealegre