D&L sets IPO price at P4.30

MANILA, Philippines - D&L Industries, the country’s leading manufacturer of food ingredients and specialty plastic colorants and additives, has priced its initial public offering (IPO) of shares at P4.30 each.

The offer price was set at the mid-point of the indicative range of P3.85 to P4.80 per share.

D&L is selling up to 1.07 billion common shares, representing 30 percent of its post-IPO outstanding capital, to raise around P4.6 billion.

Its majority shareholder Jadel Holdings Co. has an option to sell up to 15 percent or 160.71 million more shares to foreign investors in case of strong demand, which is seen to generate an additional P691 million.

The company was originally looking to sell its shares at a maximum price of P5.85 apiece but decided to slash the price to leave something on the table for investors.

Offer period starts today (Nov. 28) and will run until Dec. 6.  The shares will begin trading at the Philippine Stock Exchange on Dec. 12.

Roberto Benares, managing director at Maybank ATR Kim Eng Capital Partners, said D&L enjoys strong support from foreign investors amid a consumer-driven Philippine economy.

D&L is considered an indirect consumer play since it manufactures products for use by food, electronics, fuel and health and beauty companies.