Chemrez Affiliate Plans P6.3-B IPO

September 13, 2012, 6:55pm 

MANILA, Philippines — D&L Industries, the country’s leading manufacturer of food ingredients and specialty plastic colorants and additives, is raising up to P6.3 billion in a domestic and international initial public offering.

The firm is a dynamic industrial group established almost 50 years ago by the Lao brothers, Dean and Leon, and was built from the ground up. It holds a 34 percent stake in publicly-listed Chemrez Technologies. 

Based on its registration statement filed with the Securities and Exchange Commission, D&L is selling up to 1.07 billion primary shares, representing up to 30 percent of its outstanding capital. 

The offer period is expected to close within the fourth quarter of the year and these shares will then be listed on the First Board of the Philippine Stock Exchange.

 Proceeds from the offering will be used for investments and acquisitions, for the payment of financial obligations and for general corporate purposes. 

Maybank ATR Kim Eng Capital Partners is the lead international and domestic underwriter, issue manager and sole bookrunner. 

D&L’s consolidated revenues increased from P9.2 billion in 2009 to P12.8 billion in 2011, representing a compounded annual growth rate (CAGR) of 18 percent, while its consolidated net income surged from P226 million in 2009 to P997 million in 2011, representing a CAGR of 110 percent. 

The company sees continued growth driven by a flourishing Philippine economy. Aside from its investment in Chemrez, D&L is the market leader in various industries where it operates through its wholly-owned subsidiaries.