PNB Holdings Corp. (PHC), the real estate arm of Philippine National Bank (PNB), has set an initial reference price of P1.20 per share for its planned Sept. 25 listing by way of introduction. The reference price gives the company an indicative market capitalization of about P56.3 billion.

In a statement on Thursday, PHC said the reference price is near the lower end of the P1.18-to-P1.89-per-share valuation range cited in an independent fairness opinion. The company is expected to have about 46.93 billion outstanding shares upon listing.

PHC Chief Financial Officer Ponciano S. Carreon, Jr. said the listing is intended to provide liquidity and price discovery for shareholders who received a property dividend in 2021.

“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 said.

The listing follows the Securities and Exchange Commission’s (SEC) approval in May 2023 of a reduction in PHC’s par value to P1 per share from P100. The adjustment converted the 239.35 million property dividend shares declared in May 2021 into about 23.94 billion shares.

PHC’s portfolio consists of three 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.

The PNB Financial Center occupies about 10 hectares (ha) and contributes to PHC’s recurring leasing revenue. The PNB Makati Center is undergoing enhancements, while the approximately 8,000-square-meter (sq.m.) Buendia-Paseo property has been identified for potential redevelopment.

Together, the properties have more than 137,000 sq.m. of existing gross leasable area (GLA) and account for more than 11 ha of land. PHC said the sites could accommodate additional GLA through redevelopment, subject to planning, regulatory 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,” the company said.

PHC has identified potential redevelopment opportunities across commercial, office, retail, hospitality, and luxury real estate. The projects would be pursued in phases, depending on market demand, project readiness, regulatory requirements, financial viability, and corporate approvals, the company said.

“In parallel, PHC continues to optimize its existing leasing operations and recurring income base, ensuring that current cash flows support future growth ambitions,” it added.

PNB shares rose 1.76% to P78 apiece on Thursday.

— Alexandria Grace C. Magno