Chemical trader and distributor SBS Philippines Corp. successfully raised P1.41 billion from a recently-concluded stock rights offering.
SBS said in a disclosure to the stock exchange it sold 302 million shares through rights offer price of P4.67 apiece.
The offer price represents nearly a 20 percent discount from the stock’s closing price of P5.82 on Tuesday, the end of the offering period.
Existing shareholders record as of Nov. 22 were entitled to subscribe to one share for every 4.1325 common shares owned.
The 302 million shares issued from the offering will be listed on the Philippine Stock Exchange on Dec. 22.
SBS said it would use net proceeds from the offering to support the capital requirements of the company’s subsidiary, SBS Holdings and Enterprises Corp., and provide for general working capital requirements.
It also plans to fund prepayment of a term loan and the expansion its distribution network.
The company tapped BDO Capital and Investments Corp. as the lead underwriter for the fund-raising activity.
SBS expects net income this year to hit P151.2 million, down from P1 billion recorded a year ago that included one-time gain worth P826.3 million from the sale of certain real estate investments.
The company expects net income to reach P211.9 million in 2018, up 40 percent from the projected profit this year.
SBS is one of the major chemical trader-distributors in the Philippines supplying a diverse customer base of over 1,800 customers and with over 3,000 chemical products sourced from more than 500 suppliers.
It offers a comprehensive selection of chemical products to serve various firms engaged in food ingredients, industrial, feeds and veterinary care, pharmaceutical, and personal care and cosmetics.
The company’s logistics infrastructure includes a network of 15 warehouse facilities in five different sites with a combined floor space of about 46,000 square meters and a storage capacity exceeding 18,000 metric tons.