Splash holds roadshow in Cebu for IPO set this mid-November

Here’s another chance to be part of a giant company.

Personal care giant, Splash Corporation will do an Initial Public Offering (IPO) that is expected to generate about P2.50 billion to strengthen the company’s brand position and product development.

Executives from Splash Corporation led by its chairman and chief executive officer (CEO) Rolando B. Hortaleza were in Cebu recently to hold its second leg of domestic roadshow to drum up interest from investors.

Splash, which is the maker several personal care brands, such as Skinwhite, Maxi-Peel, BioLink Green Papaya, Extraderm, among others, is the first Filipino-owned personal care company to go public.

Currently ranked as the number six in the personal care category, Hortaleza said the company aims to climb up fighting the multinationals, which have been dominating the Philippines personal care market for years.

Speaking to the PSE trading participants and other prospective investors, Splash Corporation senior vice president and chief financial officer (CFO) Noel Manucom said the company was on track to reporting net sales of P2.88 billion by year-end, due to 13 new product launches and product variants that will contribute anywhere between 14  percent to 16 percent growth in net sales. Total net sales growth will also be in the 16 percent level, he added.

Manucom said that the nine-month period has already amounted to P1.90 billion and based on historical performance, the company usually closes the fourth quarter with P1 billion of net sales.

Owned by husband and wife tandem, medical doctors’ Rolando and Rosalinda Hortaleza, Splash Corporation will have its shares listed on the stock exchange on November 15.

The IPO consists of 223.85 million new and existing common shares at P8.70 to P11.18. It is expected to generate about P1.94 billion to P2.50 billion.

According to Hortaleza, the proceeds will be used by the company to boost its branding and marketing efforts, as well as fund for research and development (R&D), and brand acquisitions.

“We are currently in the process of developing new and innovative products that are set to launch by the second half of next year. The IPO would give us more strength to push to continuously replenish our pipeline with more innovative products and increase our market share through intensified marketing and branding initiatives,” Manucom added.

Established in 1985, Splash has grown from a P12,000 backyard business into a P4 billion enterprise that has established market presence in more than 20 countries in Asia, Middle East, and North America.

Currently, Splash Corporation, has nine brands each having its own market positioning, consumer proposition and target market.

In the exfoliant sub-category, Extraderm and Maxipeel hold a combined 86 percent of the market share while Skin White and Biolink dominate the skin-whitening category with a 41 percent market share.

Hortaleza, a Medical Doctor (M.D.), who is turned into a personal care specialist, is bullish on the personal care market in the Philippines, including Asia Pacific region, saying Splash has acquired its own advantage over imported brands, which are very hard to duplicate. – Ehda M. Dagooc