Posted on October 11, 2013 06:51:00 PM [ BusinessWorld Online ]
8990 Holdings, Inc., formerly IP Converge Data Center, Inc., plans to sell more than a billion shares, the housing developer said in a disclosure on Friday.
The company said the board, in its meeting on Thursday, "approved the offering and issuance by way of a follow-on offering consisting of up to 517.31 million primary shares and 517.31 million secondary shares at an offer to be mutually determined by the authorized representatives of the corporation".
The board has likewise approved the filing of a registration statement and listing application with the Securities and Exchange Commission (SEC) and Philippine Stock Exchange (PSE), respectively.
The board has appointed SB Capital Investment Corp. as the lead manager for the follow-on offering.
PSE last week approved the change of company’s trading name to 8990 Holdings from IP Converge Data Center. This after SEC on Oct. 1 approved amendments to then IP Converge’s articles of incorporation which, among others, include the change of corporate name and increase in authorized capital stock to P7 billion from P460 million.
The capital increase will pave the way for the subscription of 3.97 billion shares by a group of firms and individuals collectively known as the 8990 Group in a backdoor listing transaction.
8990 Group expects to corner 89.07% of the company’s outstanding capital stock once the issuance and subscription of shares are completed.
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 a statement last May. The developer said in May said it had 10 ongoing residential projects in Angeles City in Pampanga; the cities of Iloilo, Cebu and Davao; as well as in Cavite; while also managing two wakeboard parks, namely: Deca Wake Park Davao and Deca Wake Park Clark.
Shares of 8990 Holdings lost 19 centavos or 2.64% to close P7.00 apiece on Friday from P7.19 each on Thursday. -- Cliff Harvey C. Venzon