The Securities and Exchange Commission has approved the proposed listing of PNB Holdings—the property arm of tycoon Lucio Tan’s Philippine National Bank (PNB)—at a conservative valuation of 56.3 billion pesos ($944 million).

The lender spun off its property unit in 2021 and distributed 51% of the shares in the company, which owns prime real estate in the Makati central business district and the Manila Bay precinct, to the bank’s shareholders as dividend. PNB Holdings will be listed by way of introduction, without raising fresh capital.

“Market conditions remain an important consideration for PNB Holdings,” Ponciano Carreon Jr., chief financial officer of PNB Holdings, said in an emailed statement to Forbes Asia. “The company will announce the official listing date once we receive the confirmation from the Philippine Stock Exchange.”

PNB Holdings is preparing to list even as rising geopolitical tensions pummelled global markets. Philippine stocks are among the worst hit by the selloff sparked by the escalating conflict in the Middle East, with benchmark index tumbling almost 9% this month.

While the current fair value of PNB Holdings’ assets stood at 80.9 billion pesos, the company applied for a lower listing valuation to mitigate the impact of the ongoing equity market volatility, Carreon said. The properties are carried at book value of 46.8 billion pesos.

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“This pricing strategy is intended to safeguard the interests of our stockholders by allowing more room for an upside and helping minimize potential downside risk while also creating a more compelling entry point for investors,” Carreon said. “By doing so, we aim to allow the long-term value of the company to be unlocked as market conditions improve.”

The SEC said PNB Holdings’ 46.9 common shares will start trading at an initial listing price of 1.20 pesos each. The approval is subject to compliance with certain remaining requirements, the SEC said.

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With a real-time net worth of $3.2 billion, Tan is among the wealthiest in the Philippines. Apart from his stake in PNB, Tan’s interests span airlines, beverages, tobacco, and real estate.

© Forbes