Cental Azucarera de San Antonio Inc., a sugar milling company owned by the Chan family, plans to raise as much as P588.33 million through an initial public offering.
CASA, in a filing with the Securities and Exchange Commission, will offer up to 277,500 shares to be sold the public at a price of up to P2,012.52 each.
The shares represent 15 percent of the company’s issued and outstanding common shares. CASA will use the net proceeds from the primary offering to finance the upgrade of a cogeneration facility, land acquisition and improvement of sugar factory and motor pool.
The company has engaged the services of SB Capital Investment Corp. as issue manager and underwriter of the offering.
Formed in 2003, CASA is mainly engaged in sugar milling operations with facilities in Passi City, Iloilo province.
CASA emerged from the success of Central Azucarera de Bais Inc. (CAB), which is also majority owned by the Chan family. CAB is one of the oldest sugar mills in the Philippines, having been established in 1918 by Compania General de Tabacos de Filipinas, known more popularly as Tabacalera.
The group’s co-generation plant with installed capacity of 15 megawatt started commercial operations in 2017.
The company has initiated the expansion of its co-generation facilities with the the installation of an additional generating capacity of 8 MW.
But due to restrictions in the entry of foreign thermal and electrical contractors, the company is expecting some delays in the completion of the co-generation plant expansion and the export of generated electricity.
CASA in 2019 ventured into the agriculture business with the merger with A.C. Agri-Transport.
CASA registered a net income of P63.16 million in the first nine months of 2020, up 24.4 percent from P50.78 million year-on-year.
It attributed the higher net income to a general decrease in overhead and administrative costs and expenses due to the restrictions brought about by the pandemic.
Nine-month revenues, however, declined 17.6 percent to P1.1 billion also due to the effects of the pandemic,
CASA in the first company to file for an IPO this year. The Philippine Stock Exchange earlier expected three IPOs this year.