SBS disburses IPO proceeds

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    SBS Philippine Corp. said it has completely disbursed as of end-2019 the P1.16 billion proceeds of its initial public offering (IPO) that it raised in 2015.

    The company said about 8.66 percent of the IPO proceeds was used to finance the purchase and importation of additions to its product portfolio which include new products and product improvements, as well as funding the organization of a business development unit providing sales and marketing support to develop market share for such new products.

    About 30.30 percent was reallocated for investment and capital infusion in the company’s new subsidiary, Lence Holdings Corp., to partly finance the acquisition of a warehouse facility complex in Laguna.

    SBS said about 65 percent of the warehouse facility is eyed to be utilized for its warehouse and distribution operations.

    Another 8.66 percent was allocated for facility improvements, reduction of liabilities and working capital, while 2.13 percent went to equipment and machineries.

    The company also spent 24.49 percent of the amount to prepay a P282.92-million loan from BDO Unibank Inc., including accrued interests, bearing an interest of 5 percent per annum.

    “The company decided to prepay the BDO lLoan as it carried a higher interest rate compared to its other loan obligations,” SBS said.