The Securities and Exchange Commission has approved the stock exchange listing of property developer Rockwell Land Corp. by way of introduction, or without an initial public offering, following a property dividend distribution to shareholders of parent firm Manila Electric Co.
Based on documents from the SEC, Rockwell has obtained approval to distribute 3.176 billion common shares, or 51 percent, of its outstanding stock as property dividend based on a ratio of 2.818 common shares for every single share held in Meralco.
Rockwell plans to list on the Philippine Stock Exchange by way of introduction all of its 6.228 billion common shares on the PSE’s main board at an initial listing price of P1.46 per share, giving it a market capitalization of at least P9 billion upon listing.
Foreign shareholders will be paid in cash, instead of common shares, at the same price of P1.46 per share. This is in consideration of the Constitutional restriction on ownership of companies engaged in real estate.
The SEC documents showed that as a result of the property dividend, Rockwell Land now has 48,269 shareholders, 27,283 of them owning at least one board lot, resulting in a 12.3-percent public float.
The documents added that the P1.46-per share valuation of Rockwell shares was supported by valuation report and fairness opinion issued by financial adviser CLSA Exchange Capital Inc.
Rockwell’s total assets as of end-2011 amounted to P18 billion while equity stood at P9.1 billion. The company started operations in 1995 by redeveloping an old thermal power plant into an upscale mixed use community now known as Rockwell Center in Makati.—Doris C. Dumlao