LFM Properties to list by way of introduction

MANILA, Philippines — The Philippine Stock Exchange (PSE), operator of the local bourse, has approved the plan of LFM Properties Corp. to list by way of introduction. 

This comes after the Securities and Exchange Commission (SEC), the corporate regulator, gave its approval in July. 

LFM Properties’ registration statement filed with the SEC and the PSE covers up to 10.35 billion common shares. 

In a listing by way of introduction, a public offering does not need to be undertaken because the securities for which the listing is sought will be of such an amount and will be so widely held that their marketability when listed can be assumed.  

Furthermore, a listing by way of introduction is also defined as when the company and its shareholders will not be offering common shares to the public for subscription or sale in connection with the dividend distribution or the listing.

Under Section 1(b) of PSE’s Amended Rules on Listing by Way of Introduction, listing may be appropriate where the securities of an unlisted issuer are distributed by way of property dividend by a listed issuer to shareholders of that listed issuer.

 LFM Properties’ parent, Liberty Flour Mills Inc. (LFM), plans to distribute 10.35 billion common shares of LFM Properties as property dividend to all of its stockholders as of Dec. 18, 2020. LFM stockholders will receive 69 shares of LFM Properties for every LFM share they hold.

The company will then list by way of introduction 25 billion common shares on the Small, Medium, and Emerging Board of the PSE.

The PSE said its approval of the listing of the company’s shares is subject to its compliance with all of the post-approval requirements of the Exchange. 

LFM Properties is a real estate company incorporated with the SEC in 1995 under its original name, Alfaro Land Holdings Corp.

In 2005, the SEC approved a merger of LFM Land Corp. and Valero Land Corp. 

In the said merger, the entire assets and liabilities of LFM Land Corp. and Valero Land Corp. were transferred to and absorbed by LFM Properties.

The company, according to its registration statement, is engaged in real estate including managing, developing and selling land with or without buildings or improvements.