LBC eyes P1.2-B follow on offer

MANILA, Philippines - LBC Express Holdings Inc. is looking to raise P1.2 billion from a follow on offering of shares next year to raise funds for expansion.

In a media briefing, LBC acting chief financial officer and acting treasurer Enrique Rey Jr. said the company would offer 69 million shares comprising 10 million primary shares and 59 million secondary shares for up to P17 per share.“The offering period will be in the first quarter (of next year),” Rey said.

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

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

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

As early as last year, LBC sought approval from the Securities and Exchange Commission for a follow-on offering following its reverse takeover of listed Federal Resources Investments Group Inc. earlier that year.

 In an earlier prospectus, the company said proceeds would be used for strategic acquisitions, organic expansion and general corporate purposes.

LBC plans to increase its branches to 1,250 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. Revenues went up 11 percent to P6.4 billion.

In the third quarter, net income surged 95 percent to P292 million.

Rey said the company was on track to surpass its P1 billion net income target for the year.

“LBC’s strong financial performance of for the third quarter was driven by the company’s focus on expanding our portfolio of business solutions simultaneous with our push to continuously improve our express delivery service. It’s a trend that we continuing as we move into the last quarter of the year which is typically the industry’s peak season,” said Mike Camahort, chairman of LBC Express.