Company Name: Crown Asia Chemicals Corporation
Stock Symbol: CROWN
Offer Price: Php 1.41 per share
Minimum Order (shares): 1,000
Maximum Order (shares): 17,000
Payment Method: Check payable to "Crown Asia IPO"
Total No. of Shares to be Issued: 158,000,000
No. of Shares Available available in Local Small Investor's Program (LSIP): 15,800,000 common shares
Issue Manager and Underwriter: Abacus Capital and Investment Corporation
Offer Period (in Metro Manila): April 10-16, 2015 (up to 12:00 noon only on the last day)
Offer Period (outside Metro Manila): April 10-15, 2015 (up to 12:00 noon only on the last day)
Receiving Centers (in Metro Manila):
Philippine Stock Exchange (Ayala)
27/F, PSE Plaza, Ayala Triangle, Ayala Ave., Makati City
Authorized Receiving Agent: Professional Stock Transfer, Inc.
Contact Person: Edelyn Jimeno / Hilda Amion
Contact No: (0917) 817-0337
Philippine Stock Exchange (Tektite)
2/F, PSE Centre,Exchange Road, Ortigas Center, Pasig CIty
Authorized Receiving Agent: Professional Stock Transfer, Inc.
Contact Person: Salvador Valentos / Honesto Angeles
Contact No: (0917) 648-7550
Abacus Capital & Investment Corporation:
2904A East Tower Philippine Stock Exchange Center
Excahge Rd., Ortigas Center, Pasig City
Contact Person: Ralph Jan Jayoma, Elnee Rosalita, Pia Francesca Suganob
Contact No: (02) 667-8900 locals 2432, 2912 or 2909
Professional Stock Transfer, Inc.:
Unit 1003, 10/F City & Land Mega Plaza,
ADB Garnet Rd., Ortigas Center, Pasig City
Contact Person: Arlene Geologo
Contact No: (02) 687-4053, (02) 687-2733
Receiving Centers (in Cebu and Davao):
Abacus Securities Corporation - Cebu Branch
5F Innove Bldg., Samar Loop cor. Panay Road, Cebu Business Park, Cebu City
Contact Person: Vangie Canga
Contact No: (032) 233-9631
Abacus Securities Corporation - Davao Branch
Door 31-B, GB Cam Building,
Monteverde St., Davao City
Contact Person: Claire Matugas
Contact No: (082) 224-0970
Requirements:
- Application to subscribe/purchase form
- Specimen Signature Card
- Clear photocopy of any two (2) valid and current government-issued identification (passport, drivers license, SSS, GSIS, or PRC)
- Check payable to "Crown Asia IPO" (dated as of the date of the submission of the Application and crossed for deposit)
- Personal appearance is required
Purpose of IPO:
- construction of Polypropylene Random Copolymer Type 3 (“PP-R”) and High-Density Polyethylene (“HDPE”) manufacturing plant and warehouse, and purchase of equipment
- debt retirement
- modernization of existing compounds and pipes plants
- working capital purposes
About the Company
Former Name: Crown Asia Compounders Corporation
Incorporation Date: February 10, 1989
Registered Business Address: Km.33 MacArthur Highway, Bo. Tuktukan, Guiguinto, Bulacan, Philippines
Business Nature: Manufacturing, importing, exporting, buying, selling or otherwise dealing in, at wholesale and retail such goods as plastic and/or synthetic resins and compounds and other allied or related products/goods of same/similar nature, and any and all equipment, materials supplies used or employed in or related to the manufacture of such products.
At present, the Company is primarily engaged in the production of plastic compounds and other related products such as polyvinyl chloride (“PVC”) pellets. The Company also manufactures plastic pipes. The compounds and pipes are used directly and indirectly in the construction and telecommunications industries.
The Company is better known for Crown pipes brand for electrical, sanitary, potable water, and telecommunications applications. The Company also sells its plastic compounds to manufacturers of wires and cables, IC tubes, films and sheets, bottles, among others. For the past three years, the Company sold 58.06% of its compounds to the local market and the balance to the export market. On the other hand, the Company sells its pipe products purely to the local market.
Competitive Strengths:
The Company’s competitive strengths include the following:
- Established Track Record Resulting in Long-Term Customer Relationships;
- Quality Products;
- Unique Product Offerings; and
- Established Operational Policies, Systems, and Procedures.
Business Plan:
The Company’s short-term business plans include the following:
- Continuous Improvements in and Modernization of Plant, Equipment, and Facilities
- Increase Pipe Product Lines;
- Increase Market Reach;
- Research and Development;
- Improvement of Business Processes and Sourcing of Raw Materials; and
- Control Costs and Operating Expenses.
Risks relating to the Company and its Business:
- Competition in the Compounds Business (D&L Industries, Inc., Tosoh Polyvin Corporation, and Elastobest Manufacturing Corporation)
- Competition in the Pipes Business (Neltex Development Company, Inc., Moldex Products, Inc., Atlanta Industries, Inc., and Emerald Vinyl Corporation)
- Raw Material Cost and Availability
- Operating or Process Failures and Quality Assurance
- Labor Matters
- Power Shortages
- Implementation of Business Plans and Strategies
- Centralized Facilities Location
- Imitation or Infringement of the Company’s Intellectual Property Rights
- Dependence on Members of Executive Committee
- Related Party Transactions
- Interests of Primary Stockholders may differ from Interests of other Stockholders
Total Assets (as of 2014): Php 829.05M
Total Liabilities (as of 2014): Php 266.15M
Total Equity (as of 2014): Php 562.90M
Book Value (2014): Php 1.19 per share
Book Value (after IPO): Php 1.22 per share
Earnings per Share: Php 0.1383
P/E Ratio (based on 2014 earnings): 10.20
Net Profit Margin (2014): 7.69%
Return on Assets (2014): 7.89%
Return on Equity (2014): 11.61%
So, are you participating in the IPO? I wish you luck, whether it's for IPO play only or for medium- to long-term investment. :) Stock Watch
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