Food ingredient and specialty plastic colorant manufacturer D&L Industries Inc. added 4.5 percent to its public float after it fully exercised its P691 million over-allotment option.

D&L said in its disclosure to the local bourse late on Friday that its initial public offering (IPO) underwriter Maybank ATR Kim Eng Capital Partners Inc. has exercised in full its over-allotment option, where Maybank ATR bought an additional 160.714 million common shares at the IPO price of P4.30 per share.

With the exercise, D&L Industries sold in its IPO a total of 1.23 billion new and secondary common shares for total gross proceeds of about P5.3 billion.

The 160.7 million greenshoe shares are equivalent to 4.5 percent of D&L’s outstanding shares while the 1.07 billion IPO shares amounts to 30 percent of the firm’s issued capital.

Maybank ATR earlier reported that D&L’s IPO was two times oversubscribed here and abroad, and the greenshoe shares set aside by majority shareholder Jadel Holdings was likely to be exercised since D&L shares are trading above its IPO price.

On Friday, D&L’s shares closed at a new high of P4.98 per share or 16 percent above its IPO price of P4.30 on strong local buying.

A week ago, D&L Polymer and Colours Inc. (DLPC), a subsidiary of D&L Industries, signed an original equipment manufacturing (OEM) agreement with Japan’s leading chemical engineering company Showa Denko K.K. for the manufacture of a compound that makes plastics biodegradable.

The agreement covers the exclusive compounding, manufacturing, and distribution in the Philippines, as well as the worldwide distribution of the eco-friendly biopolymer compound called Bionolle Starcla.

D&L is seen as an indirect consumer play since 80 percent of its revenues comes from the food ingredients business while 18 percent comes from specialty plastics, with the bulk supplied to the automotive industry.

The firm also expects to post stronger sales in 2013 as the robust economy boosts consumer spending.

D&L Executive Vice President Alvin D. Lao said that consumer spending is seen to rise given the strength of the local economy, the low interest environment, and the confidence of both local and foreign investors.