Courier LBC looks at IPO or private placement to raise up to $150 million for expansion

HONG KONG – Araneta-owned courier and freight forwarding service provider LBC Express is looking at two options to raise funds and further expand its overseas operation ahead of the Association of the Southeast Asian Nations (ASEAN) economic integration.

 

"We are looking at an initial public offering or private equity to fund our domestic expansion, but mostly in preparation for ASEAN integration," Santiago Araneta, LBC  chairman and CEO, told GMANews in an interview here in China's Special Administrative Region.

 

The company plans to raise between $120 million and $150 million.

 

Araneta was in Hong Kong on Tuesday for the official opening of LBC's biggest overseas branch, which provides remittance, storage, and cargo forwarding services to Filipinos working here, as well as to Hong Kongers. The LBC North Point branch also offers free Wi-Fi, computer access, and has wide-screen TVs that show Filipino channels.

 

Presently, LBC has more than a hundred branches overseas, mostly in Asia and North America.

 

In the Philippines, Araneta said they have about 1,100 branches and are planning to add 50 more by the end of the year.

 

He also said the company is looking to acquire foreign companies.

 

"Acquisition of course is part of the target. We want to consolidate our markets. The intention is not to acquire local... but more foreign... And we are looking at that because of the ASEAN integration, "he said.

 

Although North America is the biggest overseas market for LBC, Araneta said he expects the Middle East, particularly Qatar, Bahrain, and Saudi Arabia, to be its fastest-growing market near-term. – CA/VS, GMA News