FedChem stocks listed at PSE today

Adhesive and sealant manufacturer Federal Chemicals Inc. will list its shares today at the Philippine Stock Exchange (PSE), making it only the third issue to brave the stock market this year.

Wrapping up its initial public offering (IPO), FedChem will list a total of 37.5 million of its outstanding shares out of which 12.508 million shares were offered to the public at P7 each.

RCBC Capital Corp. acted as the lead underwriter and issue manager for the IPO, which netted about P82 million for the company. The proceeds will be used mainly for working capital, repayment of trust receipts and investments in interest-bearing government securities.

FedChem has an authorized capital stock of P100 million divided into 100 million shares with a par value of P1 each.

Only two other companies listed their shares at the PSE this year amid the slump in the stock market: IT firm SQL*Wizard and property developer Primex Corp., both of which registered favorable results.

FedChem locally manufactures and markets several types of adhesives and sealants used by the hardware, construction and leathergoods industries. Among its products are FedSeal Elastometric Sealant, Surebond and Bondy contact cement brands.

It is also the exclusive Philippine distributor of products from Orgavyl Chemical Industries BHd., a leading publicly-listed company based in Malaysia, offering a wide array of industrial and household do-it-yourself adhesives and sealants.

Last year, the company posted total sales of P98.6 million, from P70.6 million in 1999 while net income rose from P171,000 to P411,000. In the first seven months of 2001, however, sales already reached P87.2 million while profit surged to P4.8 million.

FedChem employs 58 people at its plant and office site in Balintawak, Quezon City and is jointly owned by the Kwa and Co families, two of the biggest clans in the hardware, construction supplies, chemicals and paint businesses. – Conrado Diaz Jr.