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MANILA - Food additive maker D&L Industries Inc. will increase the target proceeds from its planned initial public offering with the sale of secondary shares as a greenshoe option.
Documents from the Securities and Exchange Commission show D&L majority shareholder Jadel Holdings Co. will sell up to a 15 percent stake in the company to international investors under the over-allotment option, upsizing gross proceeds from the maiden share sale to P7.21 billion.
Jadel, the holding firm of the Lao family, granted Maybank ATR Kim Eng Capital Partners Inc. in its role as stabilizing agent, an option exercisable within 30 days from the listing date to purchase an additional 160.71 million shares at an offer price of up to P5.85 per share or a total of P940.18 million.
Prior to the IPO, Jadel controls 85 percent of D&L, while members of the Lao family own the remaining 15 percent. If the over-allotment option is fully exercised, Jadel will reduce its stake in D&L to 64 percent after the share sale.
On top of the greenshoe option, D&L intends to raise P6.27 billion from the sale of 1.07 billion primary shares, representing up to 30 percent of its outstanding capital, in an international and domestic offering that will close within the fourth quarter of the year.
The shares will be listed on the First Board of the Philippine Stock Exchange.
Proceeds from the offering will bankroll investments and acquisitions, payment of financial obligations and general corporate purposes.
D&L owns 34 percent of listed Chemrez Technologies, which is controlled also by the Lao family.
Through its subsidiaries Oleo-Fats, First in Colours, D&L Polymers & Colours, and Aero-Pack Industries, D&L also produces hundreds of variants of its products and focuses on designing specialty product solutions for customers mostly in the food and plastic products businesses.
D&L’s consolidated revenues increased from P9.2 billion in 2009 to P12.8 billion in 2011, representing a compounded annual growth rate of 18 percent. Its consolidated net income increased from P226 million in 2009 to P997 million in 2011, representing a CAGR of 110 percent.
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