LBC Express Holdings Inc. plans to open 70 to 100 new outlets this year to strengthen its position as the leading courier and money transfer company.
LBC Express said in a registration statement filed with the Securities and Exchange Commission it would use proceeds from the planned P1.17-billion share sale to finance the construction of new branches.
“The company historically builds approximately 60 to 80 branches and for 2017 the company is targeting to build 70 to 100 stores,” LBC Express said.
It said at least 60 percent of new branches would be built in Luzon, mostly in the National Capital Region, Southern and Northern Luzon. The remaining 40 percent will be located in the Visayas and Mindanao.
“Increased commercial traffic in urbanized locations is the key driver for increasing brand footprint in the National Capital Region, while increased economic and regional fundamentals drive the growth for provincials areas,” LBC Express said.
The company currently has a network of more than 1,000 branches nationwide.
LBC Express said it was prepared disburse the proceeds from the planned follow-on offering as early as the second quarter up to the four quarter of 2017.
Aside from investing in organic growth of the company, LBC Express said it also planned to product offerings by selectively and strategically pursuing acquisition opportunities.
LBC Express said a potential company for acquisition should have synergies with the existing operational platform, have the potential to grow its customer base and market share and provide the company with the potential platform to expand into new business.
“The company believes that prudent investment in strategic acquisition will bring attractive returns to its revenues, profits and growth over the medium to long term,” LBC Express said.
LBC Express earlier said it planned to sell 69.10 million primary and secondary shares at an offer price of up to P17 apiece.