Robinsons Land offering P20-B fresh shares

Gokongwei-led property developer Robinsons Land Corp. (RLC), the first big corporation to tap the local stock market this year, has firmed up a P20-billion stock rights offering that would be launched next week.

RLC has priced the equity offering to existing shareholders at P18.20 per share at an entitlement ratio of one share for every 3.7217 common shares held as of Jan. 31.

Based on a Philippine Stock Exchange (PSE) memorandum posted on Thursday, RLC’s offering will run from Feb. 2 to 8 while tentative listing date is on Feb. 15.

RLC is authorized to sell up to 1.1-billion common shares to existing shareholders.

Proceeds from the equity deal will be used to finance the acquisition of land located in various parts of the country for all of the company’s business segments.

The company’s investment portfolio, which includes shopping malls, office and hotel businesses, accounts for the lion’s share in its revenue and cash flow. To date, the firm has 47 shopping malls.

Valued by the stock market at over P85 billion, RLC is expanding this year the area of its retail leasing portfolio to 1.5 million square meters (sqm).

JG Summit Holdings, RLC’s controlling shareholder, committed to purchase its entitlement of the rights shares and take up any unsubscribed shares.

Should JG Summit fail to subscribe to all the remaining rights shares, BPI Capital has committed to secure any remaining rights shares pursuant to its role as underwriter.