The Securities and Exchange Commission (SEC) has approved the planned initial public offering (IPO) of local personal care and cosmetics manufacturing giant Splash Corp.
Splash expects to raise between P1.95 billion and P2.5 billion from the sale of 223.85 million shares to the public, representing 30 percent of the company’s issued and outstanding capital stock after the IPO.
The shares will be sold at a price ranging from P8.70 to P11.18 each share. Of the shares to be offered, 188.85 million will be sold through the IPO while the balance of 35 million will be issued by Splash Holdings Inc. through a secondary offer.
Splash will have a market capitalization of P6.5 billion to P8.34 billion based on its proposed IPO price range.
SB Capital Investment Corp. and First Metro Investment Corp. have been tapped as lead underwriters for the planned IPO slated on the fourth quarter of this year.
Proceeds from the offering will be used to further enhance the company’s research and development capabilities and support brand-building and new product introductions and future acquisitions.
Aside from nationwide distribution in the Philippines, Splash products are sold in more than 20 countries across North America, Europe, Asia and the Middle East. Export sales contribute 10 percent or P280 million to P320 million to the company’s revenues.
Currently, Splash has nine brands with each having its own market positioning, consumer proposition and target market. In the exfoliant sub-category, Extraderm and Maxipeel hold a combined 86 percent of the market share while Skinwhite and Biolink dominate the skin-whitening category with a 41-percent market share.