SEC approves Crown Asia’s P222-M IPO

MANILA, Philippines - Pipes and plastic compounds producer Crown Asia Chemicals Corp. has received the green light from the Securities and Exchange Commission for its P222.78-million initial public offering (IPO) eyed next month.

In an en banc decision, the country’s corporate regulator approved the manufacturer’s planned market listing debut.

Crown Asia would offer 158 million primary common shares to be issued out of its existing authorized capital stock at P1.41 apiece.

Crown Asia said 70 percent of the shares would be offered to the general public, while another 20 and 10 percent would be allocated for  Philippine Stock Exchange (PSE) trading participants and  local small investors, respectively.

Upon the approval of the PSE, Crown Asia said it plans to commence the offering on April 10 and end it on April 17, with the shares’ listing eyed on April 27.

Proceeds from the offering are intended to be used for several purposes, the biggest of which is for working capital of P69 million.

Crown Asia is also earmarking P66.2 million of the amount to be raised from the IPO for the construction a manufacturing plant and warehouse, as well as for the purchase of equipment.

The remaining proceeds would be used for debt retirement and modernization of existing compounds and pipes plants, the company said.

Crown Asia, which is owned by the Villanueva and Perez families, started commercial operations in 1990 with the trading of imported polyethylene compounds and paraffin waxes.

At present, the company is engaged in the production of plastic compounds, pipes, and related products for direct and indirect use in the construction and telecommunications industries.

The company in 2014 said it generated revenues of P850.74 million and net income of P65.38 million.

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