The initial public offering of SBS Philippines Corp. is nine times oversubscribed on the back investor confidence attached to the bankability of company Chairman and President Necisto Sytengco.
There were “. . . a lot of institutions, high net worth and retail . . .” buyers, Eduardo Francisco, BDO Capital & Investment Corp. president, told The Manila Times in a text message.
BDO Capital is the sole issue manager, lead underwriter and bookrunner of the P1.155-billion IPO.
“Mr. Sytengco’s decades of experience servicing over 1,800 customers really sold the deal,” Francisco noted.
SBS offered 420 new million common shares from July 28 to August 3. The IPO shares accounted for 35 percent of the company’s issued and outstanding shares.
Post IPO, the Sytengco family will have a 64.98-percent controlling stake in the company with a market capitalization upon listing of P3.3 billion.
The company intends to use the net proceeds of P1.097 billion for product expansion and capital expenditures (P654.6 million), partly settle a term loan from BDO Unibank Inc. (P285 million) and general working capital (P157.8 million).
Under the helm of the Sytengco-owned holding firm Anesy Holdings Corp., SBS is a major chemical trader and distributor supplying more than 1,800 customers with chemical products sourced from 500 suppliers.
SBS is the third company to list in the stock market this year, following the P222-million IPO of chemical manufacturer Crown Asia Chemicals Corp. and the backdoor listing of cargo and courier services provider LBC Development Corp. via Federal Resources Investment Group Inc.
The listing beat the P7.7-billion IPO of Company of Friends Inc. (ProFriends) and the P32-billion follow on offering of nickel miner Global Ferronickel Holdings Inc.
The other companies expected to debut on the PSE are Gweilo Corp., Green Power Panay Philippines Inc., Philstocks Financial Inc. and Italpinas Development Corp.
The PSE expects nine to 10 companies to list on the exchange this year. KRISTYN NIKA M. LAZO