The Philippine Stock Exchange (PSE) has approved the listing application of local personal care giant Splash Corp. involving 223.85 million shares worth about P2.5 billion.
The shares to be offered comprise 30 percent of the company’s total issued and outstanding stock after its listing at the first board of the PSE.
Splash Corp. senior vice president and CFO Noel Manucom said the company is looking at listing its shares in the middle of November.
Manucom said the IPO will fast-track the company’s expansion of new products as well as planned brand acquisitions to increase its market lead.
Splash expects to raise around P2.5 billion from the sale of 188.85 million new common shares and 35 million secondary shares.
The shares will be priced at between P8.60 and P11.18 each share.
SB Capital Investment Corp. and First Metro Investment Corp. have been tapped as lead underwriters for the planned listing.
Proceeds from the IPO will be used by the company to fund its research and development, brand marketing initiatives and acquisitions.
Manucom said the company is currently in the process of expanding its product line beyond the group’s market dominance of the exfoliant subcategory and the skin-whitening category.
Splash has launched 11 new products so far this year, four of which compete head-to-head with dominant multinational brands, namely SkinWhite whitening deodorant, Extraderm age defy line, Maxipeel concealing cream and Kolours Recharge shampoo and conditioner.
Established in 1985, Splash has grown from a P12,000 backyard business into a P4 billion enterprise that has established market presence in more than 20 countries in Asia, Middle East and North America.
Splash said it expects double-digit growth in its bottom line this year mainly due to new product offerings. In the first six months of the year, Splash reported a 1,300-percent jump in net earnings to P144 million.
Splash is currently stepping up marketing efforts for its Extract and Skin White brands which are expected to provide higher revenue contributions in the second half of the year.
The company posted a net profit of P158.05 million in the first half this year or more than 15 times the previous level, on robust sales of most of its products.
Gross revenues rose 17 percent to P1.74 billion, mainly coming from new products launched during the early part of the year, which include its hot oil treatment.