Italpinas to sell preferred shares, sets P500-M capex
Provincial green developer Italpinas Development Corporation (IDC) is planning to issue preferred shares to raise “below P1 billion” to fund its land acquisition activities and working capital requirements.
In its disclosure to the Philippine Stock Exchange, the firm said its Board of Directors has approved the reclassification of up to 100 million unissued common shares to preferred shares.
Italpinas chairman Romolo Valentino Nati said in a press briefing that the proceeds will be for landbanking, for working capital, business developments and acquisitions.
“The timeline should be between June to August,” he said adding that the firm has allotted about P500 million for capital expenditures this year, for the continuing construction of its Cagayan de Oro project as well as the anticipated launch of its project in Batangas.
Meanwhile, Nati said they are also looking to acquire several hectares of land for possible development into the firm’s first horizontal project.
“It is something that we are exploring now,” said Nati adding that they may develop houses for retirees or the middle income market with houses ranging from P2.5 million to P5 million per unit.
He added that, We are in negotiation for two properties, one in the north, one in the Visayas. The properties are several hectares. The idea is to create a mixed-use development like a micro-township with several different components.
Nati said the firm is spending about R500 million this year to continue to construction of the P1.3 billion Primavera City, a mixed-use development with a hotel, offices, as well as commercial and residential units.
Part of the capex will also be spent for Miramonti in Sto. Tomas, Batangas which will also be a mixed-use development with 1,100 unts in three towers also with a sales value of P1.3 billion.
Earlier, the company reported that it posted a 64% percent growth in net revenues in 2016. IDC’s net sales increased from R217 million in 2015 to P356 million in 2016, based on the company’s 2016 audited financial statements. James A. Loyola.