RLC prices stock rights offering at 16% discount
ROBINSONS LAND CORP. (RLC) has priced its P20-billion stock rights offering at P18.20 per rights share, it disclosed to the stock exchange on Thursday.
The Gokongwei-led property developer said the price was based on the volume weighted average price of RLC shares on the PSE as of Jan. 24, discounted by 16%. One rights share will be made available to every 3.7217 existing common shares held as of Jan. 31.
The company last November announced the issuance of 1.1 billion common shares in a stock rights offering. The shares will be offered from Feb. 2 to 8.
BPI Capital Corp. will act as sole issue manager, book runner, and underwriter for the offer.
RLC’s parent firm JG Summit Holdings, Inc. expressed its intent to participate in the offer, saying it plans to avail of any remaining shares that will be unsubscribed by the end of the offer period.
Proceeds of the offering will be used to finance RLC’s acquisition of land located in several parts of the country to support the expansion of its business segments, which include commercial centers, residential, office buildings, and hotels.
For shopping malls, the company ended 2017 with 47 under its portfolio. It opened a new mall in Tacloban, Leyte in December. Under the residential business, RLC has over 70 condominium buildings and housing projects. The company’s office developments, meanwhile, are located across Metro Manila, Cebu City, and Ilocos.
The hotel segment consists of 10 Go Hotels, three hotels under the Summit brand, as well as the Intercontinental Hotels Group, which manages Crowne Plaza Manila Galleria and Holiday Inn Manila Galleria.
In 2017, RLC said it is forming a fifth unit that will handle infrastructure- related businesses. The new company will be the one entering bids for government infrastructure projects, reclamation projects, mixed- use complexes and real estate-related infrastructure projects.
Incorporated in 1980, RLC’s other subsidiaries include Robinson’s Inn, Inc., Robinsons Realty and Management Corporation, Robinsons (Cayman) Limited, Robinsons Properties Marketing and Management Corporation, Altus Angeles, Inc., Altus San Nicolas Corp.,GoHotels Davao, Inc., RLC Resources, Ltd., and Lingkod Pinoy Bus Liner, Inc.
RLC’s attributable profit for the first nine months of 2017 stood at P4.56 billion, slightly higher than the P4.50 billion reported in the same period in 2016. Nine- month revenues were also flat at P16.64 billion.
Shares in RLC gained 80 centavos or 3.85% to close at P21.60 each at the Philippine Stock Exchange on Thursday. —