Friday, July 27, 2007 Personal care company prepares for IPO, expects P2B proceeds
A Filipino-owned manufacturer of personal care products is planning to offer its shares to the public in the last quarter of this year.
Splash Corp. chief executive officer Dr. Rolando Hortaleza said there is a “huge probability” the company will embark into an initial public offering (IPO) given the right market conditions or “proper timing,” through the Philippine Stock Exchange.
An IPO is the first sale of a corporation’s common shares to public investors. It is a way for a company to obtain fresh funds without incurring debt.
“Everybody will have the opportunity to be a part owner of Splash and share the dream of making a great Filipino enterprise,” Hortaleza told a press interview.
Hortaleza was in Cebu last Wednesday to meet officials and members of the Cebu Chamber of Commerce and Industry.
“It’s a running forecast. We are set in audits and documentation,” he said, adding that Splash has appointed First Metro and SB Capital as underwriters.
He said Splash Corp. will file its application with the Securities and Exchange Commission next week as the company prepares to conduct local road shows in the next months to lure potential investors.
Brand development
Hortaleza said the company expects to generate between P1.6 billion and P2 billion from the IPO. The proceeds will go to brand development, marketing and international expansion, he added.
For marketing and branding alone, Splash Corp. plans to allocate P520 million this year.
“The equity will go to overseas Filipino workers (OFWs) because they play an important role in the entire operations,” he said. “We owe a lot to them.”
Hortaleza said OFWs, especially those in the Middle East, do not only consume Splash products but also help market these. Splash’s marketing arm, Splash International Inc. (SII) has created a mark in Middle Eastern countries like
United Arab Emirates, Saudi Arabia, Kuwait, Oman, Bahrain and Qatar as well as Sudan in Africa.
SII is also beginning to establish a foothold in the food supplement market in North America.
Hortaleza earlier said the company is set to introduce virgin coconut oil (VCO) - one of its brand names- through small scale operations or distributorship in North America, particularly in the western coast.
He admitted that capturing a bigger market share in the United States can be “tough and slow” since the company caters to skin whitening products while most Americans want to get a tan.
But he said Splash will focus on OFWs in the US.
In the food supplement sector, Hortaleza is optimistic about capturing a big part of the European market which “embraces” the use of natural supplements found in tropical countries.
International exports currently contributes 10 percent to the company’s revenues or about P280 to P320 million, he said. He hopes that in 2010, international business sales will contribute 25 percent of Splash’s total revenues. (MMM)
