“Yes, it was approved in the SEC en banc executive session last Oct. 31,� Gerard M. Lukban, secretary of the Securities and Exchange Commission, said in a text message last Saturday when asked about the status of DL Industries’ listing application.
The company’s IPO, however, is still pending final approval from the Philippine Stock Exchange (PSE).
DL Industries — which owns 34% of listed Chemrez Technologies, Inc. — aims to sell 1,071,429,000 primary shares priced at a maximum of P5.85 apiece and raise P6.27 billion in total proceeds from its listing, according to the IPO registration statement the company filed with the SEC last September.
This figure, which includes an option to offer an additional 160.714 million shares in case of robust demand, represents as much as 30% of the company’s outstanding capital, the company said.
Net proceeds from the firm’s planned maiden offer, estimated at P5.998 billion, will be earmarked for “investments and acquisitions, for the payment of financial obligations, and for general corporate purposes,� DL Industries said.
Maybank ATR Kim Eng Capital Partners, Inc. will act as lead international and domestic underwriter, issue manager and sole bookrunner for the planned maiden offer.
DL Industries, which began operations in 1963 by outsourcing and supplying colorants and color-matching services, was incorporated in 1971, later diversifying into the manufacture, marketing, and distribution of other chemicals and additives.
Currently, DL Industries owns specialty fats and oils maker Oleo-Fats, Inc.; plastics manufacturers First in Colours, Inc. and DL Polymers Colours, Inc.; as well as aerosol can producer Aero-Pack Industries, Inc.
DL Industries grew its net income to P641.1 million as of July, 13.76% less than the P743.4 million earned in the same seven months last year, due to a decline in revenues, according to the company’s report the SEC.
Revenues fell by 10.70% to P6.76 billion in the seven months to July from P7.57 billion the previous year, while cost of sales and services expanded 12.52% to P6.47 billion from P5.75 billion in the same comparative periods.
So far, four firms have already listed at the PSE this year:
conglomerate GT Capital Holdings, Inc. and Gotianun-led East West Banking Corp. in April, feed supplier Calata Corp. in May, and coal holding firm Coal Asia Holdings, Inc. last month.
Property developer Rockwell Land Corp. and digital marketing firm Yehey! Corp. listed by way of introduction in May and last month, respectively. — Franz Jonathan G. de la Fuente