MORE than two years after it was delisted on the Philippine Stock Exchange, Eton Properties Philippines Inc. is planning to relist on the big board of the local bourse.
The Lucio Tan- led property developer now wants to relist on the stock exchange to access various sources of funds as part of the strategy aimed at financing projects in the pipeline to grow its recurring income.
Equity holders approved increase in the company’s authorized capital stock to P8 billion from P5 billion during the annual stockholders’ meeting last week.
“The increase in authorized capital stock is to have a more solid balance sheet and eventually we would also want to relist,” Josefino C. Lucas, deputy chief operating officer, told reporters in a press briefing after the stockholders’ meeting.
Eton went for a voluntarily delisting of its shares from the PSE on January 2, 2013, after it failed to meet the 10 percent minimum public float. At that time the public owned only 5.65 percent of the company.
Philippine corporate laws allow a delisted company to apply for a relisting in the stock market only after five years.
Lucas revealed the property developer intends to gain “access to different funds, and issue bonds in the near term,” mainly to finance upcoming projects in commercial office space.
“We’d like to build up on our recurring income, capitalizing on the BPO [business process outsourcing]market,” Lucas said, noting the company expects P1.1 billion to P1.2 billion in recurring income by year-end. He said Eton wants recurring revenue flows to reach 35 percent of total revenues.
“It’s not good to not have a combination of sources of funding… Hopefully in the next few years, we see the same trend [in the real estate industry], and hopefully, we can catch up,” the Eton COO added.
Residential sales currently account for 70 percent of Eton’s revenue streams and recurring income 30 percent from commercial retail and office rentals.
The company projects a 5050 mix of residential and commercial leasing portfolio in the next five years, in line with a spending plan of P28 billion during the same period.
The company earmarked P9 billion of the P28 billion this year the start of the five-year program more than doubling the actual spending of P4.3 billion in 2014.
Eton accounts for 3 percent of revenues of conglomerate LT Group Inc.