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Business

Chem firm SBS soars in Philippine Stock Exchange debut

Louise Maureen Simeon - The Philippine Star

MANILA, Philippines - Shares of chemical trader and distributor SBS Philippines Corp. soared by 50 percent in their trading debut yesterday, reflecting strong investor confidence in the 45-year old company.

SBS, which raised P1.155 billion from the maiden offering of its shares, hit the maximum ceiling price to close at P4.12 each. It was the top gainer at the Philippine Stock Exchange Monday.

“The strong demand from investor stands as testament to the company’s track record built over 45 years of providing a full line of chemical and ingredient products.  This also speaks of the level of confidence that investors have on the company to remain profitable in the coming years,” PSE chairman Jose T. Pardo said in his welcome remarks during the listing ceremony.

The Sytengco family owned chemical firm intends to capitalize on population driven industries to achieve  double digit growth in revenues this year.  In particular, it is focusing on food and nutrition, agriculture, pharmaceutical and household care given the growing demand for these sectors.

A big chunk of its customers are in the food and beverage sector (30 percent).

The industrial sector accounts for 26 percent of the firm’s total customers followed by feeds and agriculture with 25 percent, pharmaceutical (nine percent),  cosmetics and personal care (eight percent), and others (three percent).

“We are excited about the attractive growth prospects of SBS given the strong growth in manufacturing and chemical consumption not only in the Philippines but in the Asian region as well,” SBS chairman and president Necisto U. Sytengco said.

SBS is one of the major chemical trader-distributors in the country, supplying more than 1,800 customers with over 3,000 products sourced from approximately 500 suppliers, 99 percent of which are from abroad including United States, China, and Japan, among others.

The company also intends to focus on market and business development.

Apart from this, it is on the lookout for market opportunities in the Asian region.

Of the total proceeds from the share sale, P554.6 million has been earmarked for warehouse, machinery and other equipment, P100 million for the expansion of its product offerings, P285 million for retirement of its loan with Banco De Oro, and P157.8 million for additional working capital.

SBS has a network of 15 warehouses. It plans to put up additional warehouses in Manila, Quezon City and Muntinlupa.

vuukle comment

ACIRC

BANCO DE ORO

JOSE T

NECISTO U

PERCENT

PHILIPPINE STOCK EXCHANGE MONDAY

PHILIPPINES CORP

QUEZON CITY AND MUNTINLUPA

SBS

SYTENGCO

UNITED STATES

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