The Securities and Exchange Commission (SEC) has approved the listing by way of introduction of LFM Properties Corp. on the Philippine Stock Exchange (PSE).
In its en banc meeting on June 28, the SEC has approved the registration statement of LFM Properties covering up to 10.35 billion common shares, subject to the company’s compliance with certain remaining requirements.
The company’s parent, listed Liberty Flour Mills Inc. (LFM), plans to distribute 10.35 billion common shares of LFM Properties as property dividend to all of its stockholders as of December 18, 2020.
LFM stockholders will receive 69 shares of LFM Properties for every LFM share they hold.
LFM Properties will then list by way of introduction 25 billion common shares on the small, medium and emerging board of the PSE.
The initial listing price for the common shares will be 10.7 centavos each.
The PSE’s rules on listing by way of introduction indicate that 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 that listed issuer.
Liberty Flour was incorporated on December 26, 1958 to engage in the business of manufacturing flour and flour-related products.
LFM’s products consist mainly of bakery flour products under the brands El Superior, LFM Bakers, Pine Tree and LFM Soft. The products are exclusively distributed and marketed by Parity Values Inc., Trade Demands Corp. and Liberty Commodities Corp. LFM sells its products mainly on a wholesale basis principally to members of the bakingand food supply industry nationwide.
LFM Properties, meanwhile, is engaged in the business of leasing out office and commercial spaces, while its sister firm Liberty Engineering Corp. is engaged in the sale, lease and purchase of equipment and machinery.
Liberty Flour reported a net loss of P37.11 million in the first quarter from last year’s income of P30.51 million. The company said there was a decrease of 13 percent in volume of flour bags sold in the first quarter but the fall was offset by the successive price increases implemented to offset the huge increases in the cost of raw materials.
Cost of sales rose by 39 percent from last year due to very high costs of wheat and high manufacturing costs.
In April, the company’s board approved the purchase of 3.1 hectares of land in Lemery, Batangas, from eight different owners for a total price of P260 million.