Publicly listed property firm IRC Properties Inc. plans to submit an unsolicited proposal to build a mass transportation system for Makati City under the government’s public private partnership (PPP) framework.
While bracing for its foray into infrastructure-building, IRC obtained consent from its board to issue 1.5 billion warrants with the strike price of P1 each, valid for 5 years from issuance.
The issuance includes the 300 million warrants earlier approved for issuance by the board last month.
A warrant gives the holder the right, but not the obligation, to buy common shares of stock directly from the company at a fixed price for a pre-defined time period.
The strike price or exercise price is the guaranteed price at which the warrant or option buyer has the right to buy the underlying asset.
In a disclosure to the Philippine Stock Exchange (PSE) on Monday, IRC said it was authorized by the board to discuss and negotiate with the Makati City government and other parties any matter relating to, arising from, and in connection with the mass transportation project, and in compliance with all requirements and processes under Makati’s PPP Code for the construction, operation and maintenance of the project.
The disclosure did not say what kind of mass transportation system IRC would pitch to Makati.
IRC chair Ren Jinhua and executive vice president Georgina Monsod were authorized to represent IRC in the discussions and negotiation with the Makati city government and other parties in relation to the proposed joint venture for the project.
Formerly Interport Resources Corp., IRC was incorporated in 1975 primarily to engage in the development or exploration of land, forests, minerals, oil, gas and other resources.
It initially ventured in oil exploration activities and drilled two wells in Southern Mindoro and the Sulu Sea areas but world recession in the late 1970s forced IRC to cut down on exploration activities. It was part of a group of local oil exploration companies that farmed into drilling projects mostly in offshore Palawan.
In 2013, the Securities and Exchange Commission approved the change in corporate name to the present one and the change in primary purpose and declassification of stock.