Corporate News

LBC Express revives follow-on offering

Posted on July 12, 2017

LBC EXPRESS Holdings, Inc. is reviving its planned follow-on offering, which was earlier thumbed down by the Securities and Exchange Commission (SEC) due to pending cases facing the company’s owners.

Shares in LBC were down by 16 centavos or 1.03% to close at P15.34 apiece on July 11, 2017.
“On July 10, the Board of Directors of LBC resolved to approve the re-filing with the SEC of the company’s registration statement in relation to the public offering by the company,” the company said in a disclosure to the Philippine Stock Exchange (PSE) on Tuesday.

LBC will offer up to 69.10 million common shares, consisting of 10 million new common shares to be issued and offered by the company by way of a primary offer, and of 59.10 million existing common shares to be offered by selling shareholders pursuant to a secondary offer.

The indicative offer price for the follow-on offering is up to P22 per share, which means LBC could raise as much as P1.5 billion.

“The company expects to use the net proceeds from the offering for general corporate purposes and working capital, including the expansion of retail and corporate business, information technology development, and other corporate purposes,” the logistics company added.

Philippine Commercial Capital, Inc. is the lead underwriter and issue manager for the follow-on offering.

However, LBC would still need to secure the approval of the SEC and the Philippine Stock Exchange, Inc.

Last month, the PSE thumbed down LBC’s application for a follow-on offering, due to the pending cases filed by the Philippine Depository Insurance Corp. (PDIC) against its owners.

The Araneta-led logistics company said the PSE has advised that its listing applications have been rejected “based on the suitability issue affecting the company, which arises from the ongoing civil case filed by the PDIC against LBC Express, LBC Development, LBC Properties, and certain members of the Araneta Family.”

In 2016, the PDIC filed before the Department of Justice complaints against the officials of shuttered LBC Development Bank, Inc. for estafa, and violation of the PDIC Charter or Republic Act No. 3591 by conducting business in an “unsafe and unsound manner” that caused the bank to lose at least P1.8 billion.

The PSE also cited the SEC’s earlier decision to junk the registration statement filed by LBC Express in relation to its follow-on offering.

However, LBC insisted then that the PDIC case should not affect its suitability to conduct the share sale.

Shares in LBC were down by 16 centavos or 1.03% to close at P15.34 apiece on Tuesday. -- Imee Charlee C. Delavin