LBC Express Holdings Inc., formerly Federal Resources Investments Group Inc., may postpone a planned share offering worth P829 million to the first quarter of 2016.
Former LBC Express chairman and current chief executive Santiago Araneta said in a chance interview over the weekend that the company was still awaiting the approval of the Securities and Exchange Commission before proceeding with the follow on-offering.
“Because of the Apec [meeting], the scheduling was postponed. We are still waiting for SEC to finalize the schedule but at this point, if they don’t schedule the presentation [this week], we will probably miss the next board meeting agenda. So I guess we will probably get the approval after the year ends already,” Araneta said.
This means the offering period may take place in the first quarter of 2016.
“It should be no problem in the first quarter,” Araneta said.
LBC Express, according to the registration statement posted on its Web site,
plans sell 69.1 million common shares, consisting of 10 million unissued common shares and 59.10 million in secondary shares owned by LBC Development, at a maximum price of P12 apiece.
The company plans to use proceeds from the follow-on to finance strategic acquisitions, organic expansion and general corporate purposes
LBC Express has tapped Philippine Commercial Capital Inc. as the sole underwriter of the offering.
The LBC Group in July acquired a majority interest in Federal Resources, paving the way for the backdoor listing of the courier and freight forwarding services company
LBC Express is the Philippines’ market leader in payments, remittance, courier products, mail, parcels and cargo logistics. It provides logistics services through a network of 1,000 branches nationwide.
The LBC Group has also set up branches in several locations in North America, the Middle East, Asia Pacific, Europe and Oceania.
LBC Express plans to add 100 branches over the next three years, as it remain positive about the growth of the industry.
Share price of LBC Express on Friday closed at P12.48 per share.
