• Chemical distributor SBS files for P1.15B IPO


    Chemical trader and distributor SBS Philippines Corp. has filed for regulatory approval of an initial public offer of 420 million common shares to raise P1.15 billion for its expansion, debt payment and capital refurbishment plans.

    In a preliminary prospectus filed with the Securities and Exchange Commission (SEC), SBS Philippines said it plans to launch the IPO at a maximum price of P2.75 per share.

    The company has a total of 780 million common shares. After the IPO, public ownership will stand at 35 percent, it said.
    The Sytengco family, which currently owns 93.2 percent of the company, will have its holding reduced to 60.6 percent after the IPO.

    Net proceeds of P1.098 billion, after all listing expenses and taxes have been deducted, will be used to fund the company’s product expansion and capital expenditures (P660 million); retirement of term loan (P280 million); and general working capital (P158 million), which will mostly be used from the third quarter this year until the first half of 2016.

    Final pricing of the shares is set for June 3, while the offer period will run from June 8 to 15. Tentative listing date is on June 22. The stock will be listed on the main board of the Philippine Stock Exchange.

    BDO Capital & Investment Corp. has been appointed sole issue manager, lead underwriter and bookrunner.

    SBS Philippines supplies more than 1,800 customers with more than 3,00 chemical products sourced to 500 suppliers.

    The company offers a comprehensive selection of chemical products to cater to its clients in the food ingredients, industrial, feeds and veterinary care, pharmaceutical, personal care and cosmetics segments.

    Last year, SBS Philippines’ net income rose to P100.17 million from P60.32 million a year earlier as revenues jumped to P933 million from P785.94 million.

    SBS Philippines said should the SEC approve the IPO immediately, it will become the second company to list on the local bourse this year following the P222-million IPO of Crown Asia Chemicals Corp. last month.

    Other market debuts expected this year are ProFriends (over P7 billion), Gweilo Corp. (P75 million) and Green Power Panay Philippines Inc. (P290 million); the follow-on offering of Global Ferronickel (P32 billion); as well as the backdoor listings of National Book Store Inc. via Vulcan Industrial Mining Corp. and LBC Express Inc. via Federal Resources Investment Corp., among others.

    The PSE sees nine to 10 companies listing on the exchange this year.


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