PNB Holdings Corp. (PHC) is looking to spend hundreds of millions-or potentially billions-of pesos to repurpose parts of its property portfolio after its stock market debut, pursuing growth while holding off on costlier redevelopment projects.
PHC chief financial officer Ponciano Carreon Jr. told reporters that the company would disclose within the next three to six months which properties or spaces would undergo adaptive reuse.
‘We won’t be committing big capex (capital expenditure),’ Carreon said. ‘It’s just a matter for us to optimize them, repurpose them, invest a few hundred million, maybe billions or so, and it will give very good growth.’
Consequently, PHC will list on the Philippine Stock Exchange on Friday, Sept. 25, as an initial public offering. The transaction will not involve issuing new shares or raising fresh capital.
Instead, the listing will provide a regulated trading venue for recipients of property dividends that Philippine National Bank declared in 2021.
Moreover, PHC will list about 46.93 billion outstanding shares at an initial reference price of P1.20 each, giving the company an indicative market capitalization of P56.3 billion.
Meanwhile, the price is near the lower end of the independent valuation range of P1.18 to P1.89 per share.
Carreon said this could give dividend recipients a viable exit while offering long-term investors an attractive entry point.
PHC’s portfolio comprises the PNB Financial Center in Pasay, the PNB Makati Center along Ayala Avenue, and an 8,000-square-meter (sq m) property at the corner of Sen. Gil Puyat Avenue and Paseo de Roxas.
Together, the properties have more than 137,000 sq m of existing gross leasable area and over 11 hectares of land bank.
Carreon said PHC could repurpose unused spaces and upgrade the internal, mechanical, structural, and electrical systems of its existing buildings.
For its first major redevelopment, the company is prioritizing the vacant Buendia-Paseo property. PHC is studying a mixed-use project that may include residential, office, retail and hospitality components.
Carreon mentioned that PHC aims to build the country’s tallest tower on the site, although it has yet to determine the final height and design. ‘We are aiming to become the tallest in the country. We are trying,’ he said.
The property now has an allowable floor area ratio of 34, which could support up to 272,000 sq m of floor area. Initial plans call for a mix of internal funds, limited borrowing, and possible equity from shareholders.