Listed company 8990 Holdings Incorporated (HOUSE) has filed a petition for voluntary delisting with the Philippine Stock Exchange (PSE) effective October 28, 2025.  

As part of the delisting process, the plan consists of obtaining a total of 580.57 million shares from minority stockholders through the tender offer price of P10.42 per share, equivalent to P6.04 billion. The company’s subsidiary (8990 Housing Development Corporation or 8990 HDC) and its majority stockholders are undertaking the tender offer. The tender offer period started last September 2, 2025 and will end on September 30, 2025.

Delisting can be either voluntary or involuntary. In the case of HOUSE, the act is voluntary. The main motive is to take the company private. Because of this, a tender offer is required and made mandatory. This is to provide an exit opportunity for stockholders, for it becomes very difficult to sell the shares when the company becomes private. The shares do not disappear, but they are no longer easily convertible into cash as when they are publicly listed.

As the term implies, involuntary delisting means the listed company is compulsorily removed and stripped of its listed status. 

Company footnote and its property segment

8990 Holdings Inc. (HOUSE) was formerly IP Converge Data Center, Inc. which was incorporated as an information technology and telecommunications services provider on July 08, 2005. 

The company disposed its information technology and telecommunications business altogether in 2012. On October 1, 2013 the company changed its corporate name into the present one, and also changed its primary purpose into a holding firm.  

HOUSE has six wholly-owned subsidiaries and basically operates as low-cost mass housing developers in several provinces across the Philippines, including Cebu, Iloilo, Davao, Pampanga, and Cavite.  

But in addition to horizontal mass housing subdivision projects, HOUSE also develops medium-rise building condominiums under the Urban Deca Homes brand, and high-rise building projects under the Urban Deca Towers brand. Locations of these DECA projects include Marilao in Bulacan, and various areas within Metro Manila such as Tondo, Ortigas Extension, and along EDSA.

Based on its recent financial disclosures, HOUSE has shown a decline in its financial performance for the full year 2024 and the first quarter of 2025.  Its gross revenue for the whole year of 2024 was P19.04 billion only, 15.98% lower than its gross revenue of P22.66 billion in 2023. In the process, its net income after tax dipped lower to P5.45 billion, down 7.90% from its previous of P6.90 billion in 2023.

Likewise, earnings per share (EPS) for 2024 came to P1.02 only, 8.23% lower from its EPS of P1.24 in the previous year. Nevertheless, the company’s profit margin for the trailing twelve months can be described as “excellent or very strong” at 28.61%. A 28.6% profit margin across different industries is indicative of a high level of profitability and efficiency.

For the first quarter of 2025, reported EPS for the period was P0.29 only. This was 9.06% lower from the company’s EPS of P0.32 in the same period in 2024.

In general, the debt-to-equity ratio of HOUSE is around 82.5% or 0.825x. This is considered high, although it has improved a little than it was before, for its D/E ratio was 90.8% (or 0.91x) over the last five years.

The company’s interest payments on its debt are well covered by its earnings before interest and taxes (EBIT), which is equal to 15.7x. And even if it’s considered high by normal standards, the company’s current return on equity (ROE) of 9.61% has declined. The decline has been attributed to lower sales of its mass housing and condominium projects. 

This situation for lower sales may persist as the commercial and mid-market residential sectors are expected to continue to struggle with higher vacancies, surplus inventory, and lower yields. According to a study, the commercial and residential segments (mid-market) “are being tested with higher vacancies, surplus inventory, and diminishing yields, driven by lingering post-pandemic effects and other factors such as hybrid work arrangements.” 

Furthermore, hybrid work arrangements have left office buildings with persistently high vacancy rates, while the government’s exit from the Philippine Offshore Gaming Operators (POGO) industry has further contributed to vacancies in commercial spaces.  

Overall trading and listing performance

Trading volume for HOUSE has been quite varied over the last three years. For much of the period, however, the stock’s trading volume ranged between low to moderate, which on the overall is described as “highly illiquid” by most financial analysts. Average daily volume is around 26,320 shares only.  

The only time it experienced a dramatic trading performance was following the announcement of the voluntary delisting and tender offer. Reacting to the news, trading volume exceeded its daily average by over 600% on September 1, 2025.   

Then again, HOUSE’s low trading volume is not entirely its fault. It’s because of our market, too. Our market has been one of the smallest on this side of the region. Even before the COVID-19 pandemic, newly expectant listed companies faced low valuations due to the shallow nature and thin size of our market. Companies fail to get full pricing that they opt to delist to unlock the intrinsic value of their business and assets. The same is true with HOUSE.  

It’s worth to mention that what could also be prompting HOUSE to delist is that, while the retail and tourism sectors are showing signs of recovery, the office and mid-end residential market (a segment of its property business) are still navigating structural challenges that have led to higher vacancies, surplus inventory, and lower yields for developers. 

Here is a list of some of the notable companies that applied for voluntary delisting:

• Keppel Philippines Holdings, Inc. (KPH), delisted voluntarily on July 8, 2025.
• 8990 Holdings, Inc. (HOUSE), currently in the process of voluntary delisting effective October 28, 2025

• Metro Pacific Investments Corp. (MPI), delisted voluntarily after a tender offer, with the effective date being October 9, 2024
• 2GO Group Inc.: Delisted voluntarily on July 17, 2024

• Eagle Cement, delisted voluntarily on February 28, 2023
• Holcim Philippines, Inc., delisted voluntarily on November 27, 2023

Come to think of it, the trend of voluntary delistings has become a notable theme in our market over the last three years. More companies are voluntarily choosing to go private by reasons such as “low market valuation, desire to simplify corporate structure, and the high costs of being a publicly listed company” — a kind of cause and call of concern to our regulators.

In essence, we have a challenging trend for voluntary delisting, something that president Ramon Monzon of the Philippine Stock Exchange (PSE) and chairman Ed Lim of the Securities and Exchange Commission (SEC) must urgently work on — not to mention their bold promises for the growth of the market.  

Remember, the provision for the lowering of the stock transaction tax, which is part of Republic Act 12214 or the Capital Markets Efficiency Promotion Act (CMEPA), became effective on July 1, 2025. Yet, the market’s volume and value turnover haven’t accelerated as envisioned.

In summary, while listing can afford a company to have access to capital and enhance a company’s reputation, it looks like the current rules for listing such as the costs of compliance, professional fees, and administrative and supervisory burdens, combined with the loss of managerial flexibility, still remain comparatively challenging, particularly for companies in a market where their stock valuation is not what they believe it should be. – Rappler.com  

(The article has been prepared for general circulation for the reading public and must not be construed as an offer, or solicitation of an offer to buy or sell any securities or financial instruments whether referred to herein or otherwise.  Moreover, the public should be aware that the writer or any investing parties mentioned in the column may have a conflict of interest that could affect the objectivity of their reported or mentioned investment activity.   You may reach the writer at densomera@yahoo.com)