Splash sets IPO price at P8.98

Splash Corp., the largest Filipino-owned beauty and personal care company, has priced the its initial public offering (IPO) at P8.98 per share, according to its filing with the Philippine Stock Exchange (PSE).

Splash expects to raise around P2 billion from the sale of 223.85 million shares to the public.  The shares comprise 30 percent of the company’s total issued and outstanding stock after listing at the first board of the PSE.

The final offer price, which is priced at the lower end of its indicative price range, is 14.5 times the company’s projected 2007 earnings of P282 million.

Of the total shares to be offered, 188.85 million will be issued by way of IPO while the balance of 35 million will be sold by existing shareholders.

SB Capital Investment Corp and First Metro Investment Corp. have been tapped as lead underwriters for the IPO.

Proceeds from the IPO will be used by the company to fund its research and development, brand marketing initiatives and acquisitions.

The offer period starts today and will run until Nov. 12 while the listing of the shares has been set on Nov. 15. Splash said its double-digit growth in its bottom line this year will be driven by 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 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. 

Currently, Splash has nine brands 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.