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Housing firm’s listing vehicle set for infusion

Posted on September 24, 2013 10:19:00 PM [ BusinessWorld Online ]

IP CONVERGE Data Center, Inc., the backdoor listing vehicle of mass housing developer 8990 Group, is set to receive an additional P465.58 million in equity from various investors, the company said in a disclosure yesterday.

IP Converge said its board on Monday approved the issuance of 465.58 million shares at P1 each to six individuals, namely: Raul R. Rocha (87.02 million), Socorro P. Lim (100 million), Antholin T. Muntuerto (69.50 million), Mark Werner J. Rosal (69.60 million), Nicolas D. Divinagracia (69.60 million) and Rodrigo B. Libunao, Jr. (69.76 million).

“The aforesaid issuance and subscription are subject to approval by the Securities and Exchange Commission (SEC) of the pending application by the corporation for the increase in its authorized capital stock and shall be issued out of the authorized and unissued capital stock of the corporation,” the disclosure said.

The transaction will come on top of a 3.97-billion-share issuance to and subscription by Iholdings, Inc.; Januarius Resources Realty Corp.; Kwantlen Development Corp.; Luis N. Yu, Jr.; Mariano D. Martinez, Jr.; and Januario Jesus Gregorio B. Atencio III collectively known as the 8990 Group.

The company has sought SEC approval to increase its authorized capital stock to P7 billion from P460 million to make way for the share issuance.

“Subscribed capital is expected to increase to P4.66 billion with a total of 4.15 billion shares or 89.07% of the resulting outstanding capital stock of the corporation owned or controlled by the 8990 majority stockholders,” the disclosure read.

“Further, a total of 509.05 million shares or 10.93% of the outstanding capital stock shall be owned by the public, inclusive of the shares to be issued to the subscribers.”

The company’s public float stands at 19.59% currently.

8990 Group is known primarily for its main brands Deca Homes (mass housing subdivisions) and Urban Homes (medium-rise buildings).

Deca Homes has developed 51 subdivisions, with more than 41,000 housing units turned over to date, according to an earlier official statement.

The developer said in May said it had 10 ongoing residential projects in Angeles City in Pampanga, Cavite, Iloilo, Cebu, and Davao, while also managing two wakeboard parks -- Deca Wake Park Davao and Deca Wake Park Clark.

IP Converge Data Center used to be an information technology solutions firm before turning into a shell company last year when it transferred all its assets to parent IP Ventures, Inc.

Shares of IP Converge were last traded at P5.60 apiece on Monday. -- Cliff Harvey C. Venzon  

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