The Philippine Stock Exchange (PSE) has approved the initial public offering (IPO) of plastic compounds producer Crown Asia Chemicals Corp, a week after it was cleared by the Securities and Exchange Commission, a PSE official said on Friday.
“Yes, the PSE approved the listing application of Crown Asia Chemicals Corp. for an initial public offering,” said Roel Refran, PSE chief operating officer.
The offering of 158 million primary common shares—priced at P1.41 each —will run from April 10 to 17, which will later be listed on the PSE main board on April 27. Gross proceeds are expected to reach P222 million.
Crown Asia Chemicals will be the bourse’s first IPO listing this year, overtaking the anticipated P7.7-billion IPO of Company of Friends Inc. (ProFriends) and the P32-billion offering of nickel mine Global Ferronickel Holdings Inc.
In a notice posted on the PSE website, Crown Asia showed market capitalization at P889.42 million, with an estimated 25.048 percent public ownership after listing.
Net proceeds of P203.98 million after listing-related charges and taxes will be used immediately in the second quarter this year for the construction of its P-PR and HDPE manufacturing plants and warehouse as well as purchase of equipment (P66.2 million); partial retirement of its P68.8-million loan with Security Bank Corp. (P43.8 million); modernization of its existing compounds and pipes plants (P25 million); and working capital (P68.98 million).
Abacus Capital & Investment Corp. was employed as issue manager, arranger and underwriter of the maiden offer.
In 2014, the company’s revenues increased to P850.74 million from P801.82 million based on good performance of its compounds and pipes businesses.
Crown Asia, which is based in Guiguinto, Bulacan, manufactures and sells plastic compounds and synthetic resins for making construction materials such as tubes and pipes.
The Villanueva and Perez families, who will later own a combined 74.95 percent stake in Crown Asia after IPO, own the company.