Gokongwei-led property developer Robinsons Land Corp. is raising as much as P20 billion in fresh funds for expansion by selling new shares to existing investors.
RLC plans to give existing shareholders the right to buy one new share for every 3.6 to 4.3 common shares held, based on a disclosure to the Philippine Stock Exchange on Friday.
“RLC intends to use the majority of its net proceeds from the offer to finance the acquisition of land located in various parts of the country for all its business segments,” the disclosure said.
The number of shares to be offered to the public will be between 950 million and 1.1 million.
The offer price, number of shares, entitlement ratio and timelines have yet to be finalized.
Based on the range of the entitlement ratio and the amount that RLC plans to raise, leading online stock brokerage COL Financial estimated that the offer price would be between P17.59 and P21 per share.
“Based on these numbers, we estimate that our FV (fair valuation) estimate will be reduced from P31.05 to between P27.10 and P28.10 once the rights offering is done,” the brokerage said.
This year, RLC opened the following new shopping malls: Robinsons Place Naga, Robinsons Place Iligan and Robinsons North Tacloban.
Next year, the property developer will open new malls in the following locations: Ormoc, Leyte; Pavia, Iloilo; Tuguegarao, Cagayan and Valencia, Bukidnon.
RLC will end this year with a total of 47 shopping centers.