Packaging manufacturer Steniel Manufacturing Corp. has set the final price for its follow-on offering at P2 per share, as it hopes to raise about P315 million to finance expansion plans.
In a disclosure to the local bourse Monday, the firm said the proposed fund-raising activity would offer 157.64 million primary common shares.
This came just more than a week after the Philippine Stock Exchange (PSE) had authorized its application for the additional share issuance.
The offer period has been set for Nov. 3 to 7 this year.
The additional shares will be listed on the main board of the PSE on Nov. 17.
According to its preliminary prospectus, Steniel intends to tap a portion of the proceeds to expand its paper warehouse in Panabo, Davao del Norte.
The project, which will cover 1.9 hectares, is pegged to cost P250 million. It will also have additional new logistics and production capacities.
The proceeds will also help Steniel support its working capital requirements.
‘Note that the company’s operations are working capital-intensive, as [Steniel] must maintain a sufficient buffer stock of raw materials to ensure continuous production,’ Steniel said in its latest prospectus.
Re-IPO
This follow-on offering was floated since late last year, after the PSE had lifted Steniel’s nearly two-decade trading suspension in April 2024.
It was in 2006 when trading of Steniel shares got suspended due to liquidity issues and default on a P636-million loan deal with several banks.
The firm’s shareholders then approved the filing of borrower-initiated petitions for corporate rehabilitation.
Steniel also stressed at the time that it had enough assets to cover and settle its loans.Its negative stockholders’ equity was then addressed after the Securities and Exchange Commission had allowed its capital stock hike.