PROPERTY developer Philippine Realty and Holdings Corp. (Philrealty) is set to wipe out about P1.7 billion in capital deficit with an equity restructuring approved by the Securities and Exchange Commission.
Effective next Monday, Feb. 22, the Philippine Stock Exchange will reflect a reduction in the par value of Philrealty’s shares to P0.50 from P1 in line with the quasi-reorganization recently approved by the SEC.
The SEC recently approved the reduction in Philrealty’s authorized capital stock to P4 billion from P8 billion.
“The restructuring of the corporation’s equity is being undertaken to create additional paid-in capital which will be applied to lessen the corporation’s deficit and shall significantly expedite the corporation’s ability to declare dividends to its shareholders,” Philrealty said in a disclosure to the local bourse on Monday.
Philrealty has made plans for a big comeback to the property market after its exit from a 12-year court-assisted rehabilitation in 2014, becoming the first publicly listed company to graduate from court receivership in the aftermath of the Asian financial crisis.
Last year, it announced a diversification into energy, healthcare, education and financial services businesses to hedge against any potential downturn in the real estate cycle. While property will still be the company’s main business moving forward, the entry into these new businesses is seen to unlock new sources of recurring revenues seen to keep the company afloat if and when the real estate downturn happens.
The company is valued by the stock market at around P1.57 billion.