PNB Holdings sets listing price at P1.20 per share
PNB Holdings Corporation (PHC) remains on track for its planned September 25 listing by way of introduction, with an initial reference price of ₱1.20 per share, positioned at the lower end of the independent fairness opinion valuation range of ₱1.18 to ₱1.89 per share.
Upon listing, PHC is expected to have approximately 46.93 billion outstanding shares, translating to an indicative market capitalization of approximately ₱56.3 billion based on the initial reference price of ₱1.20 per share.
Following the May 29, 2023 Securities and Exchange Commission (SEC) approval of reduction in par value from ₱100 per share to ₱1 per share, the original 239,353,710 property dividend shares declared in May 18, 2021, became 23,935,371,000 shares, effectively splitting up via 1:100 ratio the shares now owned by the dividend recipients.
“The listing of PHC fulfills a commitment we made to shareholders when the property dividend was declared in 2021, providing both liquidity and price discovery for their investment. We are entering the market at a reference price of ₱1.20 per share, which is near the lower end of the independent fairness valuation range,” PHC CFO Ponciano S. Carreon Jr. said.
“This presents an opportunity for investors to participate in a company backed by strategically located and irreplaceable real estate assets with significant long-term development potential,” he added.
PHC’s real estate investments consist of three strategically located Metro Manila properties: the PNB Financial Center in Pasay City, the PNB Makati Center along Ayala Avenue, and the Buendia-Paseo property in Makati City.
Its largest asset, the PNB Financial Center, spans approximately 10 hectares within the Manila Bay growth corridor and remains a key contributor to recurring leasing revenues.
Meanwhile, continuing enhancements at the PNB Makati Center are intended to strengthen the property’s competitiveness within one of the country’s premier office locations. The approximately 8,000-square-meter Buendia-Paseo property has been identified by the company as its most redevelopment-ready asset and forms an important component of its long-term growth plans.
The portfolio comprises over 137,000 square meters of existing gross leasable area (GLA) that generates recurring revenues across multiple commercial real estate segments. At the same time, these assets represent more than 11 hectares of land bank with significant redevelopment potential that may support significantly greater gross leasable area than currently exists, subject to final planning, approvals, and market conditions. This combination of current cash flow generation and long-term redevelopment upside forms the cornerstone of PHC’s long-term value appreciation strategy.
PHC has outlined a multi-phased redevelopment strategy covering potential commercial, office, retail, hospitality, and luxury real estate opportunities. The company’s approach is to continue maximizing the value of its existing leasing operations while progressively evaluating opportunities to redevelop and reposition selected assets over time. The timing and scale of any redevelopment initiative remain subject to market conditions, project readiness, regulatory requirements, and the necessary corporate approvals.
Its long-term growth strategy centers on unlocking the significant embedded value of its portfolio of prime real estate assets through a carefully phased redevelopment program encompassing commercial, office, retail, hospitality, and luxury real estate opportunities.
Backed by robust liquidity, strong working capital, and a low leverage profile, with a total liabilities-to-equity ratio of only 0.02:1, the Company is positioned to pursue future redevelopment initiatives from a position of financial strength while maintaining substantial balance sheet capacity. In parallel, PHC continues to optimize its existing leasing operations and recurring income base, ensuring that current cash flows support future growth ambitions.
As with all major capital investments, redevelopment plans will be implemented progressively and remain subject to market demand, project readiness, regulatory approvals, financial viability, and appropriate corporate approval.
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