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MANILA, Philippines – LBC Express Holdings, Inc. (PSE:LBC) sent a correspondence per “LBC eyes P1.2-B follow on offer” article stating that it has always been the company’s intention to proceed with the listing of its issued yet unlisted and outstanding capital stock.
According to the aforementioned article, which was also posted on the official website of the Philippine Star, LBC is eyeing to raise P1.2 billion of shares through a follow-on tender offering (FOO) to accumulate funds for expansion purposes.
Enrique Rey Jr., the acting LBC Chief Financial Officer, disclosed that the company will tender 69 million shares consisting of 10 million primary shares. Also, there will be 59 million secondary shares at a rate of P17 per piece. Rey added that the offering will take place in the first quarter of 2017.
The expansion of branch network will benefit the most from the shares tender. From 1,225 branches, the group is looking into having up to 1,250 arms by 2017. In addition, LBC also opened up its aim of enlarging its logistics business. The transaction’s underwriter will be the Philippine Commercial Capital, Inc.
In early 2015, the company had an inverse acquirement of listed Federal Resources Investments Group Inc. Afterward, the management assayed an approval from the Securities and Exchange Commission (SEC) for the said offering.
In the missive written by Miguel Angel A. Camahort, LBC President, the company expresses its explanation on why it will conduct a follow-on tender offering as required by the PSE’s rules and regulations. At present, the management stated that the firm’s plans for the offering are yet to be finalized. Any updates concerning the development of follow-on offering plans will be disclosed by the company to the general public, assured by Camahort.
The clarification of the article is in line with the company’s efforts to serve the interest of investors and trading participants.
The company recently reported strong financials with a robust nine-month net income rise by 59 percent to P621million. The revenues of the group also increased to P6.4 billion, an 11 percent increase. During the third quarter alone, the company was able to achieve a net income of P206 million, more than double than its net income for the same quarter last year.
Rey stated that the company is in the path of exceeding its 2016 net income target of P1 billion.
LBC businesses focus on cargo, logistics, payments, remittance, parcels, boxes, and mail. It became an agent for brokerage and air cargo when it was founded in 1945. The company also led the country’s door-to-door delivery for 24 hours and time-sensitive cargo service.