The Philippine Stock Exchange rejected the planned P1.2-billion share offering of LBC Express Holdings Inc. amid a civil case filed by Philippine Deposit Insurance Corp against affiliated companies of the group and certain members of the Araneta family.
LBC, which is controlled by the Araneta family, said in a disclosure to the stock exchange PSE’s rejection of its listing application was based on the “suitability issue affecting the company” because of the PDIC case.
The Securities and Exchange Commission earlier rejected the registration statement filed by LBC relating to its follow-on offering.
“The PSE noted that given the SEC’s rejection of the registration statement, the company will not be able to submit the SEC order of registration, which is an essential listing requirement,” LBC said.
LBC filed with the SEC an application last year to sell 69.1 million shares with a proposed maximum offer price of P17 per share. Of the 69.1 million shares to be sold to the public, 59.1 million are secondary shares while 10 million are primary shares.