MANILA, Philippines - D&L Industries, the country’s leading manufacturer of food ingredients and specialty plastic colorants and additives, has obtained the Philippine Stock Exchange’s approval to list on the local bourse.
This sets the stage for D&L’s planned initial public offering of up to P7.21 billion worth of shares in both the domestic and overseas markets. Without the greenshoe option, the company may raise as much as P6.3 billion from the sale of up to 1.07 billion primary common shares at a maximum price of P5.85 per share.
The offer shares represent up to 30 percent of the firm’s post-IPO outstanding capital.
The issuer’s underwriter Maybank ATR Kim Eng Capital Partners, Inc. said the international roadshow would run from Nov. 19 to 23, while the pricing of the shares of D&L would be shortly after.
Tentative date for the offering is from Nov. 28 to Dec. 5, while the listing of the shares on the first board of the PSE is scheduled on Dec. 12, 2012.
D&L’s majority shareholder Jadel Holdings Co. Inc. has agreed to sell up to 15 percent or 160.71 million shares to foreign investors under a greenshoe option.
Proceeds from the offering would be used for investments and acquisitions, payment of financial obligations and for general corporate purposes.
Aside from its investment in Chemrez, D&L is the market leader in various industries where it operates through its wholly-owned subsidiaries.
D&L’s units produce hundreds of variants of its products and focuses on designing innovative, customized and specialty product solutions for customers mostly in the food and plastic products businesses.
Through wholly-owned subsidiary Oleo-Fats, D&L manufactures a diverse line of specialty fats and oils, culinary and other specialty food ingredients, industrial fats and oils for leading food manufacturers and fast food restaurant chains in the country.
D&L also owns First in Colours and D&L Polymers & Colours, which produce a line of various products used in the manufacturing of plastic products including pigment blends, color and additive masterbatches and engineered polymers for the Philippine and export markets.
Another wholly-owned subsidiary, Aero-Pack Industries, is the only manufacturer of three-piece aerosol cans in the country and is a leading contract filler for various home and personal care products producers.
Affiliate Chemrez Technologies is engaged in the manufacture and sale of specialty industrial chemicals such as biodiesel, oleochemicals, powder coatings and resins, which have various applications in the construction, shipping, soap and detergent, and furniture industries.