SBS Philippines Corp., a chemical trading firm that seeks to diversify into property-related businesses, has ditched a plan to raise fresh capital from a follow-on public offering in favor of selling new shares to existing investors.
In a disclosure to the Philippine Stock Exchange (PSE) on Monday, SBS said its board had agreed to recommend a stock rights offer consisting of up to 350 million of unissued shares within 12 months from approval of shareholders.
Based on its current stock price of over P6 per share, the proposed sale could raise over P2.1 billion.
“Anesy Holdings Corp., the company’s major shareholder, has indicated its support for the rights issue and will subscribe to any remaining stock rights shares that will be unsubscribed after the mandatory second round of the stock rights offer,” the disclosure read.
SBS has rescheduled its annual stockholders meeting for June 9, during which the stock rights offering would be proposed alongside an amendment of bylaws to boost authorized capital stock to P5.55 billion from the current P1.55 billion. The firm would still need to secure the approval of the Securities and Exchange Commission and the PSE. —DORIS DUMLAO-ABADILLA