LBC targets follow-on float to raise P1.17 billion for expansion

LBC Express Holdings Inc. (LBC) plans to conduct a follow-on offering of up to 69.1 million common shares to raise up to P1.17 billion in working capital for the listed firm’s expansion thrust.

The plan will be subject of approvals of the Securities and Exchange Commission (SEC) and the Philippine Stock Exchange, Inc. (PSE).

LBC filed with the SEC last December 1 the registration for the public offering by way of follow-on offer of common shares consisting of 10 million new shares and of 59.1 existing shares.

LBC said the indicative offer price will be a maximum to P17 per share.

The sole underwriter for the capital raising exercise will be the Philippine Commercial Capital Inc.

Net proceeds from the offering will be disbursed for general corporate purposes and working capital, including the expansion of retail and corporate business, and information technology development, LBC Chairman Mike Camahort said .

In the first nine months, LBC improved its gross profit by 22 percent to P2.3 billion.

“LBC’s strong financial performance for the third quarter was driven by the Company’s focus on expanding portfolio of business solutions simultaneous with increase focus to continuously improve express delivery service. We see this continuing as we move to the last quarter of the year, which is typically the industry’s peak season,” Camahort said.

Compared to last year’s figures, cashflow grew 25 percent with the good performance of the company’s corporate solutions arm, which acquired numerous key accounts on top of its existing blue chip clients.