The Philippine Stock Exchange said Thursday it approved LFM Properties Corp.’s listing by way of introduction or without an initial public offering.
It said in a notice posted on its website LFM Properties would list 25 billion common shares on the small and medium enterprises board of the local bourse tentatively on Nov. 9.
The shares will have an initial listing price of P0.107 apiece.
LFM Properties is eligible for listing by way of introduction after the board of parent firm Liberty Flour Mills Inc. declared for distribution 10.3 billion LFM Properties common shares to shareholders.
The property dividend declaration resulted in the distribution to LFM shareholders 69 LFM Properties common shares for every LFM common share they own.
Under Section 1(b) of PSE’s Amended Rules on Listing by Way of Introduction, listing may be appropriate where the securities of an unlisted issuer are distributed by way of property dividend by a listed issuer to shareholders of the listed issuer.
LFM Properties will have P2.675 billion in market capitalization after the listing.
BDO Capital & Investments Corp. is the financial adviser on the transaction.
LFM earlier said its subsidiary would serve as a vehicle for possible real estate ventures and opportunities.
LFM is engaged in the business of manufacturing flour, utilization of its by-products and the distribution and sales of its produce. Its subsidiary LFM Properties owns and operates the Liberty Plaza Building and Liberty Center Building at H. V. dela Costa in Salcedo Village, Makati City.
Rockwell Land Corp., Integrated Micro-Electronics Inc. and Altus Property Ventures Inc. were among the companies that also took the same listing route.
Companies that were listed in the local bourse by way of introduction are required to undertake the public offer within a year from listing.