Philippines: Pryce Corp sells $2.4m shares to investor

A majority shareholder of Pryce, Josefina Multi-Ventures sells liquefied petroleum gas (LPG).

Pryce noted the deal will infuse fresh capital into the company to fund its general working capital requirements.

Pryce will divest 24.5 million company shares priced at P5 apiece to an institutional buyer through an investment banker. Josefina Multi-Ventures will then subscribe to the same number of shares after the approval of an increase in Pryce’s capital stock.

“The transaction will allow for the stimulation of liquidity in the market for the shares of the company to benefit its stockholders by dispersing of a number of shares at a fair value,” Pryce said in its statement.

The placing tranche is expected to be completed by December 12, 2016, or the date of the expected payment for the shares, three days after trading date.

Pryce expects public float and foreign ownership level to increase after the transaction.

Pryce recently reported its net income from January to September 30, 2016 soared 57 per cent to P712.48 million as against the P453.17 million net profit posted for the same period of last year.

The company’s subsidiaries registered consolidated revenues of P4.736 billion, up 14.9 per cent from the P4.122 billion attained for the same period in 2015.

This is underpinned by strong sales volume growth of LPG, the group’s main product line, which grew 31 per cent to 135,939 metric tons from 103,769 MT. Strong sales volume growth further countered the effects of an almost 15 per cent drop in average selling price enabling the company to register growth in revenues all the same.

The LPG slaes accounts for 90 per cent of revenues for the period.

Pryce’s last trading price increased 2.22 per cent or P0.110 to close at P5.06.