Roxas Holdings Inc., a sugar producer controlled by the First Pacific group, plans to raise as much as P1.19 billion through a stock rights offering to finance the expansion of its ethanol business.
Roxas Holdings said in a filing with the Securities and Exchange Commission it would offer 265.968 million common shares to eligible shareholders at ratio of one right share for every 4.33 common shares owned.
Other details of the rights offer, including the price and record date, have yet to be finalized.
Roxas Holdings said it would use the net proceeds from the fund raising activity to finance the capital requirements of newly acquired ethanol subsidiary San Carlos Bioenergy Inc.
The offer shares will come from the unissued capital stock of the company which is currently at P1.5 billion.
The First Pacific group, including First Pacific Natural Resources Holdings BV and/or First Agri Holdings Corp., have committed to subscribe not just to their respective entitlements of rights rights offer but also to any unsubscribed rights share during the offer period.
BDO Capital & Investments Corp. was tapped as the underwriter for the rights offering.
Roxas Holdings chief finance officer Celso Dimarucut earlier said the company expected to complete the rights offering before the May elections.
Roxas Holdings initially acquired a 26.7-percent interest in SCBI in March 2015 and increased its stake in the bioethanol company to 93.68 precent, with the purchase of 64.02 percent from Menarco Clean Energy Inc. of the Jimenez family for P1 billion the following month.
The acquisition of SCBI boosted the company’s position as the leading bioethanol producer in the country.
Roxol Bioenergy Corp., the ethanol arm of RHI, was the top bioethanol producer in the Philippines in 2014 with 32.2-million-liter production, followed by SCBI with about 26.7 million liters.
Share price of Roxas Holdings settled at P5.04 on Friday, up 0.80 percent from previous day’s close.
