Crown Asia’s P222-M IPO gets SEC nod

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PLASTIC compounds producer Crown Asia Chemicals Corp. has secured approval from the Securities and Exchange Commission (SEC) to proceed with its planned P222-million market listing.

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In an email forwarded to media, SEC said it approved Crown Asia’s P222-million initial public offering (IPO) of 158 million primary common shares priced at P1.41 each.

The offer period is targeted to be held from April 10 to 17. The company will be the first this year to be listed on the Philippine Stock Exchange’s Small, Medium and Emerging (SME) Board.

The company plans to use the net proceeds of P204 million, after listing-related charges and taxes, for the construction in the second quarter of this year of its P-PR and HDPE manufacturing plants and warehouse as well as for the purchase of equipment (P66.2 million), partial retirement of a P68.8-million loan with Security Bank Corp. (P43.8 million); modernization of its existing compounds and pipes plants (P25 million); and working capital purposes (P68.98 million).

Abacus Capital and Investment Corp. was tapped 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 in the previous year due to the solid performance of both its compounds and pipes businesses.

Based in Guiguinto, Bulacan, Crown Asia manufactures and sells plastic compounds and synthetic resins for making construction materials such as tubes and pipes. It is owned by the Villanueva and Perez families, who will later own a combined 74.95 percent stake in Crown Asia after the IPO.

Aside from the anticipated P32-billion follow-on offering of Global Ferronickel Holdings Inc., other market debuts expected in 2015 include the IPOs of Company of Friends Inc. (P7.7 billion), Gweilo Corp. (P75 million) and Green Power Panay Philippines Inc. (P290 million), as well as the backdoor listings of National Book Store Inc. via Vulcan Industrial Mining Corp. and JDVC Resources Corp. through Island Information and Technology Inc.

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

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