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PNB Holdings Unlocks Billions in Real Estate with Stock Market Debut

Years after a landmark property swap, PNB Holdings finally goes public. Will shareholders cash in on $1.4B in hidden real estate value?

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2 min read
This image is clicked outside. There are buildings on the left side and right side. There are...
This image is clicked outside. There are buildings on the left side and right side. There are lights in the middle. On the left side it looks like a store.

PNB Holdings Unlocks Billions in Real Estate with Stock Market Debut

PNB Holdings, the property division of Philippine National Bank (PNB), has registered its shares with the Securities and Exchange Commission. The move paves the way for a long-awaited stock market listing, allowing existing shares to be traded without raising new funds. Shareholders will soon gain a clearer stake in the company’s valuable real estate assets.

The listing follows a 2021 deal where PNB swapped properties for shares in PNB Holdings. At the time, the bank promised to distribute 59% of the new company as a property dividend to its shareholders. The dividend includes 293.4 million shares, issued at a ratio of 0.16 per PNB share, with distribution set for October 2024.

So far, only 1,823 of the 36,362 eligible shareholders have received their dividends. The delay has left many waiting to benefit from the company’s three prime properties: a Manila Bay office complex, an Ayala Avenue building, and an undeveloped lot near Makati’s central business district. These assets hold a book value of 46.8 billion pesos but are now worth 80.9 billion pesos ($1.4 billion) on the stock market. That difference suggests 34 billion pesos in unrealised gains. The stock market listing aims to unlock this hidden value, giving investors a tradable stake in the properties. Beyond immediate gains, the move also improves stock market visibility for PNB Holdings. It creates a foundation for future growth, potentially including partnerships or even a real estate investment trust (REIT) in the long term.

The stock market listing will allow PNB Holdings shares to trade publicly, offering shareholders a direct way to benefit from the company’s real estate. With a market value far exceeding book figures, the properties represent a significant asset for investors. The October 2024 distribution date marks the next key step in the process.

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