Publicly-listed paper packaging firm Steniel Manufacturing Corporation is planning to raise up to P315 million from the public through a planned follow-on offering of new common shares.
In a disclosure to the Philippine Stock Exchange, the firm said its board of directors has approved the conduct of a public offer of up to 157.65 million primary common shares at a price of P1.80 up to P 2.00 per share.
This will be subject to compliance with the applicable rules and regulations of the Securities and Exchange Commission (SEC) and the PSE.
The offer shares comprise about 11 percent of the company’s 1.42 billion outstanding shares although it only has 876.18 million listed shares.
Steniel and its subsidiaries are engaged in the manufacturing, processing, and selling of all kinds of paper products, paper board and corrugated carton containers, and all other allied products and processes.
As of December 31, 2023, the operating subsidiaries of the Company are Steniel Cavite Packaging Corporation (SCPC) and Steniel Mindanao Packaging Corporation (SMPC).
SCPC is primarily engaged in the manufacturing, processing and selling of all kinds of paper products, paper board and corrugated carton containers, and lease of properties.
SMPC is in the business of manufacturing, importing, buying, selling or otherwise dealing in, at wholesale and retail, all kinds of paper, paper rolls, paper boards, cartons, containers, packaging materials and other pulp and paper products.
Trading in the shares of Steniel resumed last April after the PSE lifted the trading suspension imposed on the firm for nearly 18 years.
“Pursuant to the company’s submission of the structured reportorial requirements and compliance with the requirements of the exchange’s rules, please be advised that the exchange has resolved to lift the trading suspension effective April 30,” the PSE said.
The PSE imposed a trading suspension on Steniel Manufacturing due to liquidity issues, after it defaulted on a P636-million loan signed in 2000.