PNB Holdings Eyes Follow-on Offering Next Year

MANILA, Philippines — PNB Holdings Corp. (PHC), the property arm of Lucio Tan’s Philippine National Bank, may tap investors through a follow-on offering as early as next year, provided market conditions improve and the fund raising coincides with the launch of a major project or acquisition. In an interview with The STAR, PHC chief financial officer Ponciano Carreon Jr. said the property company could explore a follow-on offering after the six-month lock-up period expires around late March or early April 2027. A follow-on offering is a share sale conducted after a company is already listed, allowing it or existing shareholders to offer additional shares to investors. “We’re hoping that within the next 12 months, if the market’s okay, maybe the public can expect a follow-on offering,” Carreon said, but stressed that no final decision has been made. PHC is scheduled to list on the Philippine Stock Exchange on Sept. 25 by way of introduction, which means its existing shares will become publicly traded without the company raising fresh capital. The company has set an initial reference price of P1.20 per share, near the lower end of an independent valuation range of P1.18 to P1.89. With about 46.93 billion outstanding shares upon listing, the reference price implies a market capitalization of roughly P56.3 billion. Carreon said becoming a listed company would give PHC greater flexibility to tap different sources of funding once it is ready to accelerate its expansion. “When you introduce a company to the public, the objective is for the public to discover the company. That widens the horizon for possible funding options, whether equity, debt or others,” he said. “So you have flexibility when the time comes and the market is ripe for development. And if you need funding support, then you can invite investors who want to participate,” he added. However, Carreon said PHC is not under immediate pressure to raise fresh capital given its strong liquidity, with the company capable of initially funding projects internally. The timing of any follow-on offering would instead depend on market conditions and the need to finance a development or an attractive acquisition opportunity. “If we suddenly see a very good company or asset that we want to acquire, then we may need to raise funds. It will depend on the use of proceeds,” he said. PHC is also entering the public market with little debt and substantial room to borrow if needed. Carreon said future expansion could be financed through a mix of internal funds, debt and equity, although management intends to keep leverage conservative. The company is also keeping its options open for acquisitions, partnerships and joint ventures as it looks beyond the organic redevelopment of its existing portfolio. Carreon said PHC has already held discussions with both local and foreign parties, although no transaction has been finalized. For now, PHC’s immediate priority after the listing is to further strengthen its balance sheet and liquidity while preparing its properties for eventual redevelopment. “If the market is favorable, liquidity is robust and the balance sheet is healthy, we can press the button and proceed,” Carreon said. “If not, we will continue strengthening the balance sheet and refining the master plans for our properties to make sure they are aligned with market conditions,” he added.