D&L Industries plans P6.3-B IPO in 4th qtr

MANILA, Philippines - D&L Industries, which owns 34 percent of listed Chemrez Technologies Inc., plans to raise as much as P6.3 billion through an initial public offering (IPO) of shares in the fourth quarter this year.

Founded 50 years ago by siblings Dean and Leon Lao, D&L is the country’s leading manufacturer of food ingredients and specialty plastic colorants and additives.

Based on its registration statement filed with the Securities and Exchange Commission, D&L will sell up to 1.07 billion primary shares, representing up to 30 percent of its outstanding capital, in both local and international markets.

The company has tapped Maybank ATR Kim Eng Capital Partners as the lead international and domestic underwriter, issue manager and sole bookrunner for the issue.

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

 Aside from its investment in Chemrez, D&L is the market leader in various industries where it operates through wholly-owned subsidiaries.

The company produces hundreds of variants of its products and focuses on designing innovative, customized and specialty product solutions for customers mostly in the food and plastic products businesses.

Through wholly-owned subsidiary Oleo-Fats, D&L manufactures a line of specialty fats and oils, culinary and other specialty food ingredients, industrial fats and oils for leading food manufacturers and fast food restaurant chains in the country.

D&L also owns First in Colours and D&L Polymers & Colours, which produce a line of various products used in the manufacturing of plastic products including pigment blends, color and additive masterbatches and engineered polymers for the Philippine and export markets.

Another wholly-owned subsidiary, Aero-Pack Industries, is the only manufacturer of three-piece aerosol cans in the country.

Affiliate Chemrez is engaged in the manufacture and sale of specialty industrial chemicals such as biodiesel, powder coatings and resins, which have various applications in the construction, shipping and furniture industries.

D&L has seen its net earnings and revenues grow steadily over the past three years. From only P226 million in 2009, its net profit jumped more than four-fold last year to P997 million for a compounded annual growth rate of 110 percent. Consolidated revenues likewise grew to P12.8 billion from P9.2 billion.