LBC plans P1.2-B follow-on offer

MANILA, Philippines - LBC Express Holdings Inc. is seeking regulatory approval for its planned follow on offering.

It filed with Securities and Exchange Commission (SEC) a registration statement covering the issuance of 69 million shares comprising of 10 million primary shares and 59 million secondary shares.

“The indicative offer price for the follow-on offering is up to P17 per share,” LBC said in a disclosure.

At that price, the company aims to raise as much as P1.2 billion.

LBC has tapped Philippine Commercial Capital Inc. as the sole underwriter for the transaction.

Enrique Rey Jr., LBC Express Investor Relations Office, acting CFO and treasurer Enrique Rey Jr. said the offering period would take place in the first quarter of next year.

He expressed optimism the deal would attract investors given the improving economic and political environment in the country.

Proceeds would be used for branch expansion and to grow the company’s logistics segment.

“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,” LBC said.

LBC has tapped Philippine Commercial Capital Inc. (PCCI) as underwriter for the transaction.

As early as last year, LBC Express sought SEC approval for its planned follow-on offering following its reverse takeover of listed Federal Resources Investments Group Inc.

The company is targeting to have 1,250 branches by 2017 from 1,225 as of the end of June.

In the nine months to September, the company grew its net income by 57 percent to P895 million as revenues rose 11 percent to P6.4 billion.

In the third quarter alone, net income before tax was P292 million, up 95 percent.

The company is on track to surpassing its net income target for the year of P1 billion and hitting its revenue goal of P8.5 billion.

 Logistics remains the core business of LBC , contributing 87 percent of its revenue in the third quarter. Within its logistics business, retail retains the lion share.

LBC’s money business also continues to perform strongly in the domestic remittance arena. The money business accounted for 13 percent of revenue during the third quarter.