LBC Express Holdings Inc. said its board has approved the re-launch of a follow-on offering of 69.1 million shares as part of its backdoor listing requirements.
Proceeds of the offering, which could reach as much P1.17 billion, will be used to fund branch expansion here and in the Middle East and to boost its logistics business.
In a disclosure to the Philippine Stock Exchange (PSE) on Monday, LBC said its board approved the re-launch of the follow-on offering on Friday.
The offering will consist of 10 million primary shares and 59.1 million secondary shares.
Shareholders and the board had previously approved the conduct of a follow-on offering in meetings held in September and October last year.
Although the offer price has yet to be finalized, LBC Chief Financial Officer Enrique Rey Jr. earlier said they were looking to offer the shares at up to P17 each, which means total proceeds may reach P1.17 billion.
The 69.1 million offer shares are equivalent to about a 10 percent public float for the company.
The company added the board also approved the registration of the offer shares with the Securities and
Exchange Commission (SEC) and the listing of the said shares with the PSE.
LBC is confident that the follow-on offer will be subscribed at a healthy rate despite the volatility in global financial markets, including the Philippines.
“We don’t see political risk at this point in time… For now, we just want to set the target date [for the offer and listing]so that we can finally finish off the backdoor process,” Rey has said earlier.
The company expects to hit 60 branch openings this year. LBC currently operates 1,225 branches, 91 hubs, and 13 distribution centers in the Philippines alone. It is earmarking P300 million to P400 million in capital spending next year to open up to 80 branches.
LBC earlier reported that net income surged 57 percent to P895 million in the first nine months of 2016 in from a year ago while revenues grew 11 percent to P6.4 billion.
LBC is engaged in the business of logistics and money transfer services, catering to retail and corporate customers for logistics and domestic and international transactions for money transfer.
Aside from the Philippines, it has set up branches in various locations in North America, the Middle East, Asia Pacific, Europe and Oceania.