Chemical trader SBS Philippines Corp. said Tuesday it plans to conduct a stock rights offering that could raise more than P5 billion in proceeds.
SBS said in a disclosure to the stock exchange its board of directors approved the stock rights offering of up to 845.487 million common shares to existing shareholders.
Based on the stock’s market price of P5.95 per share as of Monday, the company could raise as much as P5 billion in proceeds.
Net proceeds from the offering will be used to support the capital requirements of subsidiary SBS Holdings and Enterprises Corp., prepay a term loan, expand its distribution network and provide for general working capital requirements.
The rights offer shares will come from the proposed increase in the company’s authorized capital stock to P5.5 billion from P1.55 billion.
The offer shares will be listed in two tranches, comprising of existing unissued common shares to be subscribed by the public and common shares to be created from the proposed increase in the authorized capital stock.
SBS said controlling shareholder Anesy Holdings Corp. committed to subscribe to its entitlement and any unsubscribed rights shares after the mandatory second round of the stock rights offer.
SBS is an importer, wholesaler and distributor of a wide range of chemical products serving a diverse set of industries which include food and beverage, industrial and detergents, feeds and agriculture, water treatment, pharmaceuticals and personal care, building and constructions and mining and minerals.
