PSE okays listing of new RLC shares

The Philippine Stock Exchange (PSE) has approved the application of Robinsons Land Corp. (RLC) to list as much as 450 million new common shares on the local bourse.

The listing of the shares has been set on Oct. 5, the PSE said in a circular to trading participants.

RLC is offering up to 811.13 million shares to both local and international institutional investors. Of the total, 770.585 million will be offered overseas from Sept. 11 to 22. The remaining 40.55 million will be offered locally from Sept. 27 to 29.

The company has set aside up to 121.67 million shares for over-allotment.

The shares will be sold at a price to be computed on the basis of the volume weighted average trading price of the common shares for the 10 trading days ending on Sept. 22, subject to a discount of up to 10 percent. The final offer price will be announced on Sept. 25.

The PSE approval, however, is subject to the submission by RLC of the Securities and Exchange Commission pre-effective clearance on its registration statement.

UBS Investment Bank has been tapped as sole international underwriter and book runner while ATR Kim-Eng Capital Partners Inc. is the domestic underwriter.

The Gokongwei group, the controlling shareholder in RLC, wants to raise RLC’s minimum public float to as much as 40 percent from the current seven percent.

Parent company JG Summit holds 74 percent of RLC, which operates shopping malls and develops high-rise residential and office condominiums and residential communities. About 19 percent of the property concern is held by URC.

RLC has set aside P7 billion this year for the development of new malls, office buildings for business process outsourcing firms, residential projects, and landbanking activities.

Bulk of the programmed capital budget or about P3.5 billion will go to the construction of residential and office buildings while P2 billion has been set aside for acquisition of properties for future development.

Funding will come from internally-generated cash, the planned share offering, and possibly new borrowings.

RLC is building seven new malls in Davao, Tagaytay, Dumaguete, Sucat, Manila, Pangasinan, and Gen. Santos. These new malls are expected to be completed next year or in 2008.

The company is also completing the redevelopment of a portion of Robinsons Galleria mall to be called West Wing, and Robinsons Ermita.

RLC remains focused on the lucrative middle-market residential housing as it aims to launch at least three projects this year including East of Galleria, a high-rise residential condominium located in the Ortigas business district.

As for its office buildings, RLC expects to complete the construction of Robinsons Cybergate Center Tower 2, an office building complex designed for call centers and BPO firms.

As for the housing segment, RLC intends to focus on the middle-income market for lots with options for housing priced at a range of between P600,000 to P2 million.

RLC is stepping up efforts to acquire properties via joint venture in key cities where there is big potential for mid-market real estate property sales and it will aggressively tap the overseas Filipino workers market in Europe and in the Middle East.