Share sale boosts RLC stocks at resumption of trading
An article published in the
Philippine Star, October 6, 2006
By Zinnia B. Dela Peña
Trading in shares of Gokongwei-owned property
unit Robinsons Land Corp. (RLC) resumed yesterday with the stock closing at
P14 per share, 17 percent higher than the firm's offer price of P12 a share.
Trading in RLC stocks was suspended for eight sessions to make way for its
primary and secondary offering of 811.14 million shares to both local and
foreign investors at P12 each.
The offer price represented a 7.7-percent discount to the weighted average
price of the shares for the 10 trading days ended Sept. 22.
Parent company JG Summit Holdings Inc. sold 7.26 million shares in RLC while
food unit Universal Robina Corp. (URC) sold 307.03 million shares.
RLC vice-chairman and chief operating officer Lance Gokongwei said the
company raised about P5 billion from the stock offering which would be used
to partly fund capital expenditures for fiscal year 2007, amounting to P7.03
billion.
Gokongwei said that with the additional listing of shares, RLC's public
float has increased to 40 percent. "It is an important milestone in the
quest of the group to be more open to the capital markets, and to unlock the
values long hidden in its well-run subsidiaries – first URC and now RLC. By
increasing the liquidity of RLC to 40 percent, we not only allow the market
to recognize the intrinsic value and prospect of our business but we also
welcome the value that the capital markets bring to the competitiveness,
professionalism, accountability and transparency of our company," he said.
"This was a record-breaking offering for us," Gokongwei added, pointing out
that the high percentage of reputable international investors that
participated in the offering affirms the soundness of RLC's mixed-use
business model.
"We view this also as an affirmation of the market's approval of RLC's
maturity into a more globally competitive and professionally managed
organization," he said.
The successful relisting of RLC shares was also attributed to the resurgent
Philippine property market and the improving business climate.
Gokongwei said the group may tap borrowings in late 2008 to fund the balance
of P10 billion for its capex program.
He said the company has earmarked P15 billion in capital expenditures over
the next two years.
About 40 percent of that amount will be channeled to the development of new
shopping malls, 30 percent in office buildings and residential projects, and
the balance for landbanking and hotel projects.
For next year, RLC plans to put up new shopping malls in Dumaguete (Negros
Oriental), Tagaytay (Cavite), Manila, Davao, and Bulacan.
RLC president Frederick Go said the company also plans to complete the
expansion of its existing malls in Ermita, Manila and Bacolod.
Go expects all business units of RLC to perform well with three new housing
projects and three new office buildings catering to the needs of business
process outsourcing firms.