Crown Asia Chem gets nod as 1st IPO of 2015

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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.

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18 Comments

  1. Good day baguhan lang po ako, matanong ko lang papaano ka bibili nang share gaya nang ipo?ibig sabihin ba kahit wala pa xa sa listing makakabili kna nang shares?meron po ako col account.. Salamat

    • Baney, makabili ka ng IPO shares ng CROWN thru your broker. Pero di kna makabili kc wala na available na LSi. Oversubscribed na. Sa trading day ka na lng bumili. Sympre iba na price nya, malamang mas mataas kysa P1.41 per share on that day. April 27, 2015 (Monday) po yung official listing day nya. Congrats sa mga nakapag-avail.

  2. good day po,ask ko lang.pwede po ba ipasok under eip ng col financial ipo?..what are the risk if you buy IPO in this company.? sorry po newbie lang…thanks and god bless

    • King, you can’t enter IPO in an EIP coz only listed companies in the PSE can be entered to EIP. Pag cnabi kcing IPO, ililista plang sya sa PSE board on its 1st trading day. CROWN company will be listed pa on April 27, 2015, and that’s the time when you can enter it to your EIP kung gusto mo. Mas mganda mag-EIP kung alam mo prospectus ng company muna at may sent na target price sya. Pag IPO kc, kahit walang target price yung stock, it will surely skyrocket on its 1st trading day. Target price of a certain stock is usually determined by your stockbroker, and they will advise you when to sell, buy or hold that stock for example.

  3. Kung magsubscribe ka sa IPO, dpat magsubscribe kna in 100,000 shares or more pra mramdaman mo yung paglago nya sa portfolio mo. At initial trade offering nya na 1.41 per share, malamang prang X yan na first day pa lng ng trading day ay umabot ng hanggang P10+ per share. So pag naginvest ka ng 100,000 shares sa CROWN, your return would be P10 – P1.41= P8.59 x 100,000 ay P859,000 in just one day trading only. So sweet ROi! Cheers!

    • How would it be possible po na maging P10+ per share sa first trading day if the ceiling price is +50% only? (P1.41 x 1.50 = P2.115).

    • Correction lng. I mean, in 30 days, it will go up as high as P10 per share. Mas mataas pa. DNL pla isa nyang competitor w/c is P19 per share na ngayon Apr 17 @ 12nn recess time. So mas mtaas pa na + P10 yung sa CROWN. Sayang di man lng me nabigyan ng khit LSi lng na 17,000 shares @ 1.41 per share. Sa April 27 (trading day) nalang babawi. Congrats sa mga nakakuha at nakasubscribed as early as March 31 pa. Cheers!

  4. Pls correct this, if I may understand, tig-239,000 shares lng binigay per stock brokerage company. There are about 158,000,000 total shares that will be offered for the IPO of CROWN. So pag sa broker mo mrami kayong nagsubscribe for the said IPO, dats d time for your broker na magdeclare sya ng “oversubscribed” na yung IPO. Malamang mas mrami per IPO shares nailaan sa underwriter company nya. Cheers!

  5. Robert Phillips on

    I’ve been waiting for this company to debut in pse. It will definitely be oversubscribed and can’t buy the amount of shares I’m interested on buying.

  6. Donald Babor on

    I’m interested to buy shares (@ IPO price) of Crown Asia Chemical on April 2015.
    What is the procedure to join the IPO? What are the requirements?
    I have an account with COL Financial Group.

    Please advise!

    Thank you very much.

    • Hi Donald,

      Once you have login to your account, you can see “PUBLIC OFFERING:” below “My last 5 trades”.
      Just click the PUBLIC OFFERING, it will open new window, then go to option 2 for COL online subscription.

      Thanks. Hope it helps.