By Revin Mikhael D. Ochave, Reporter

MASS HOUSING developer 8990 Holdings, Inc. is planning to voluntarily delist from the Philippine Stock Exchange (PSE), with its subsidiary launching a tender offer at P10.42 per share as part of the exit process.

“Upon extensive deliberations by the board of directors of the company, the board has approved the voluntary delisting of the company from the PSE,” 8990 Holdings said in a regulatory filing on Thursday.

“The board noted that the voluntary delisting of the company would unlock the intrinsic value of the company’s business and assets, which does not seem to be fully appreciated by the market, based on the historical trading price of the company’s shares on the PSE,” it added.

The tender offer will exclude common shares owned by majority shareholders Iholdings, Inc., Kwantlen Development Corp., Mariano D. Martinez, Luis N. Yu, Jr., and the qualifying common shares of the directors.

The offer price represents a 10% premium over the one-year volume-weighted average price of the company’s common shares from July 16, 2024, to July 16, and falls at the upper end of the range in an independent valuation report.

The tender offer price is also a 13.3% premium over the share price of P9.20 apiece on July 16.

8990 Holdings said the voluntary delisting is up for stockholders’ approval during the annual stockholders’ meeting on Aug. 26.

For a company to voluntarily delist from the PSE, the tender offer should constitute at least 95% of the total issued and outstanding common capital stock of the company.

8990 Holdings is the third company to delist this year, joining Kepwealth Philippines Holdings, Inc. and Philab Holdings Corp.

Trading of 8990 Holdings’ shares was suspended on Thursday and will resume on Friday following the announcement.

DragonFi Securities, Inc. Equity Research Analyst Jarrod Leighton M. Tin said in a Viber message that the tender offer price offers a “reasonable exit” for minority shareholders.

“The decision to go private is understandable. Remaining listed entails significant regulatory and reportorial requirements, which may no longer be aligned with 8990 Holdings’ current strategic direction. For a company with limited trading activity, the benefits of staying public may no longer justify the costs,” he said.

“Given 8990 Holdings’ prolonged illiquidity and lack of investor interest, the stock has suffered from poor price discovery. With limited market activity, it has been difficult for the public to realize the company’s intrinsic value,” he added.

Mr. Tin said the increasing number of companies opting to delist this year reflects the challenges faced by the local capital markets.

“The growing number of exits underscores persistent issues in the local capital markets — chief among them, low liquidity and limited investor participation,” he said.

“That said, the PSE’s move to streamline its roster by delisting dormant or thinly traded companies may help consolidate trading volume and improve liquidity in remaining names,” he added.

8990 Holdings has business interests in the affordable housing business. Its portfolio includes low-cost mass housing units and subdivision lots, medium-rise, and high-rise building housing units. The company also has interests in hotel operations.

The company’s real estate brands include Deca Homes, Deca Towers, and Urban Deca Towers.