Food and plastic input manufacturer D&L Industries plans to offer shares within the price range of P3.85 to P4.80 through an initial public offering targeted to begin by the end of this month.
This price range will allow D&L to raise at least P4.73 billion to as much as P5.9 billion from its stock market debut, based on an offering circular issued by the Philippine Stock Exchange, whose board has approved the IPO.
The offering will run from November 28 to December 5 and the listing of shares is targeted by December 12.
D&L is authorized to sell up to 1.07 billion primary common shares but an overallotment of 160.7 million shares have been set aside that arranger Maybank ATRKim Eng Capital Partners can choose to take up at the offer price.
If the overallotment option is exercised, 34 percent of D&L’s outstanding stock will be held by the public after the offering. The option can be exercised within 30 days after the listing date. Without the overallotment, 30 percent of the firm’s shares will be owned by new investors.
Institutional players are expected to take up as much as 70 percent of the offering while 20 percent will be earmarked for PSE trading participants and 10 percent to small investors. Proceeds from the offering are intended for investments and acquisitions, payment of financial obligations and general corporate purposes.
Through its operating units, D&L produces specialty product solutions for customers mostly in the food and plastic products businesses. Through subsidiary Oleo-Fats, D&L manufactures a diverse line of specialty fats and oils, culinary and other specialty food ingredients as well as industrial fats and oils for leading food manufacturers and fast-food restaurant chains in the country. Oleo-Fats caters to most of the leading food manufacturers and quick-service restaurant chains in the Philippines such as Jollibee, McDonalds, Kentucky Fried Chicken, all of the major donut chains and food conglomerate Universal Robina Corp. It also produces food safety solutions such as cleaning and sanitation agents for various customers. Doris C. Dumlao