THE Philippine Stock Exchange (PSE) has rejected three listing applications of Araneta-led LBC Express Holdings, Inc., including the company’s bid to list 10 million common shares that it had planned to issue in a follow-on offering.
In a disclosure on Thursday, LBC Express said the PSE’s rejection was due to the ongoing civil case filed by the Philippine Deposit Insurance Corp. (PDIC) against the company, LBC Development, LBC Properties, and certain members of the Araneta family.
LBC Express said the PSE also rejected its listing application for more than 1.2 billion common shares issued by the company to its affiliate LBC Development Corp. pursuant to various private placement transactions, and its listing application for nearly 179 million common shares issued to certain public investors.
“[The] rejection of the listing applications is based on the suitability issue affecting the company, which arises
from the ongoing civil case filed by the Philippine Deposit Insurance Corporation against LBC Express, LBC Development, LBC Properties, and certain members of the Araneta family,” the company said.
“Furthermore, the PSE also cited as a reason for the rejection of the listing applications the earlier rejection by the Securities and Exchange Commission of the registration statement filed by the company relating to its follow-on offering,” it added.
The PSE noted that given the SEC’s rejection of the registration statement, the company will not be able to submit the SEC Order of Registration, which is an essential listing requirement.
On the part of LBC, it said the company |respectfully maintains that the PDIC case does not pose an issue on the sustainability of the company to list its shares.”
“The company believes that such civil case does not pose any serious question relating to the integrity and capability of the company or any of its directors, executive officers, promoters, or control persons, and that the company and each of its directors and officers are compliant with the suitability rules of the PSE,” LBC said.
“In relation to the SEC Order, we reiterate that the company had taken steps and measures to expand the scope of the information on the legal proceedings involving certain members of the Araneta family,” it added.
LBC said it hopes to continue engaging with both the SEC and PSE to determine options given the SEC order and PSE’s rejection and “hopefully arrive at a resolution addressing the concerns of the regulators, the company and its stakeholders.”
LBC is a courier and money transfer company that offers retail and corporate courier and cargo, money remittance, and logistics services. It has a growing network of over 6,400 branches, hubs and warehouses, partners, and agents in over 20 countries.