Logistics company LBC Express Holdings Inc. plans to raise P1.5 billion from a follow-on offering in June.
LBC Express said in a registration statement filed with the Securities and Exchange Commission it would sell up to 10 million primary shares and 59.1 million secondary shares at an offer price of up to P22 apiece to raise funds for expansion.
It tentatively set the offering period on June 25 to 29 and the listing date on July 9.
The company said it would use the net proceeds from the offering to fund strategic expansion, general corporate purposes and working capital.
“The company historically builds approximately 60 to 80 branches every year and for 2018 the company is targeting to build 70 to 100 branches. These branches are typically located in mall developments, urbanized areas as well as developing locations across the country,” LBC Express said.
It said the average construction cost for each new branch was P800,000 to P1.2 million.
The logistics firm said it was interested in expanding in Ilocos region, Cagayan Valley, Southern Luzon and Bicol region.
It said that in the Visayas and Mindanao, it was looking to expand in Cebu, Mandaue, Iloilo, Bacolod, Dumaguete, Leyte, Samar, Davao City, Cagayan de Oro City, Butuan, Surigao and General Santos City.
LBC Express said that aside from pursuing organic growth, it would selectively and strategically pursue acquisition opportunities.
It said that in evaluating acquisition opportunities, the company would consider synergies with existing operational platform, potential to grow its customer base and market share and expansion opportunities to new businesses.
“The company believes that prudent investment in strategic acquisitions will bring attractive returns to its revenues, profit, and growth over the medium to long term,” LBC Express said.
LBC Express announced in March it would acquire two logistics firms in a bid to strengthen its position as the country’s leading payments, remittance, courier products, mail, parcels and cargo logistics company.
It is consolidating operations by acquiring four affiliate cargo and remittance companies operating in California, New Jersey, Saipan and Hawaii for $8.55 million.
LBC Express provides logistics services via a network of 1,000 branches nationwide. The LBC group also set up branches in various locations in North America, the Middle East, Asia Pacific, Europe and Oceania.