Share sale boosts RLC stocks at resumption of trading

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.