IRSA Propiedades Comerciales S.A. (NASDAQ: IRCP; ByMA: IRCP), the leading commercial real estate company in Argentina, informs the capitalization of reserves and change in nominal value of its shares.
On July 8, 2021, IRSA Commercial Properties (IRCP) announced the approval from Argentina's Comisión Nacional de Valores and the Buenos Aires Stock Exchange for capitalizing inflation adjustments in share capital and changing the nominal value of shares. The capital stock will see a shift from ARS 1 to ARS 100 per share, with a total capitalization resulting in 541,230,019 shares. Effective July 20, 2021, shareholders will receive new shares with equal economic rights. The market valuation of IRCP after these adjustments is pegged at ARS 54,123,001,900.
- Approval from regulatory bodies for share capitalization.
- Increase in total shares from 126,014,050 to 541,230,019, enhancing liquidity.
- Substantial downward effect on share price expected due to nominal value change.
- Estimated new share price post-capitalization significantly lower at ARS 105.25.
BUENOS AIRES, Argentina, July 8, 2021 /PRNewswire/ --
The Company informs that Comisión Nacional de Valores (the Argentine National Securities Commission) and Buenos Aires Stock Exchange approved what has been decided in the Company's Shareholders meeting held on October 26, 2020:
(I) the capitalization of Inflation Adjustment of Share Capital, Share Premium and Other Reserves recorded in the Financial Statements corresponding to the fiscal year ended on June 30, 2020
(II) the change in the nominal value of the capital stock shares with a nominal value of ARS 1 and one vote per share to a nominal value of ARS 100 each and one vote per share, and
(III) the distribution of 53,996,987,920 issued shares representing 42,
The Company also informs to all shareholders who have such quality as of July 19, 2021, according to the registry kept by Caja de Valores S.A., that from July 20, 2021, the shares distribution and the change in nominal value will be made simultaneously and the entry of the change of 126,014,050 book-entry common shares, with a nominal value of ARS 1 each and one vote per share, for the amount of 541,230,019 book-entry common shares with a nominal value of ARS 100 each and one vote per share, will be made in the Scriptural Registry of Caja de Valores S.A. From the indicated date, the new shares to be distributed due to the capitalization will have economic rights under equal conditions with those that are currently in circulation.
The Company share capital after the indicated operations will amount to ARS 54,123,001,900 represented by 541,230,019 book-entry common shares with a nominal value of ARS 100 each and one vote per share.
Likewise, the Buenos Aires Stock Exchange has been requested to change the modality of the negotiation of the shares representing the share capital, that is, that the negotiation price is registered per share instead of being negotiated by Argentinean peso (ARS) of nominal value, given that the change in nominal value, and the issuance of shares resulting from the capitalization, would produce a substantial downward effect on the share price.
It should be mentioned that this capitalization and change in the nominal value of the shares do not modify the economic values of the holdings or the percentage of participation on the share capital. Likewise, and for the purpose of clarifying the above, some examples are detailed below, where in all cases the effect of capitalization and change in nominal value are assumed, and effects on the price are not considered for market reasons:
Common shares:
IRSA COMMERCIAL PROPERTIES (IRCP) MARKET VALUE | CURRENT | AFTER CAPITALIZATION |
Total shares | 126,014,050 with an ARS 1 nominal value | 541,230,019 with an ARS 100 nominal value |
Price (7/1/21) | ARS 452.05 | — |
Price (estimated) | — | ARS 105.25 |
IRCP market value | ARS 56,964.7 million | |
Example for an investor holding 100 common shares:
CURRENT HOLDING | HOLDING AFTER CAPITALIZATION | |
Number of shares | 100 shares with an ARS 1 nominal value | 429 shares with an ARS 100 nominal value |
Price (7/1/21) | ARS 452.05 | — |
Price (estimated) | — | ARS 105.25 |
+Payment of fraction in cash | — | ARS 52.75 |
Position Value | ARS 45,205 | |
ADS (1 to 4 ratio to common shares):
IRSA COMMERCIAL PROPERTIES (IRCP) MARKET VALUE | CURRENT | AFTER CAPITALIZATION |
Total ADS | 31.5 million | 135.3 million |
Price (7/1/21) | USD 10.16 | — |
Price (estimated) | — | USD 2.37 |
IRCP market value | USD 320.1 million | |
Example for an investor holding 100 ADS:
CURRENT HOLDING | HOLDING AFTER CAPITALIZATION | |
Number of ADS | 100 | 429 |
Price (7/1/21) | USD 10.16 | — |
Price (estimated) | — | USD 2.37 |
Holding value | USD 1,016 | |
Investor Relations Department
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View original content:SOURCE IRSA Propiedades Comerciales S.A.
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