SEC approves Chemrez's P1.5-B shares offering

The Securities and Exchange Commission has approved alternative fuel firm Chemrez Technologies' to sell at least P1.5 billion worth of additional shares to the public and raise extra cash to trim debts. Chemrez will offer at most 384.62 million new shares at a price range of P3.90 to P4.90 per share. The shares will be equivalent to a quarter of the biofuel firm's post-offering capital. The proceeds will be used to fully pay the firm's P667 million loan from parent company D&L Industries, settle bank obligations and partially finance working capital requirements. Chemrez plans to offer its new stocks from November 20 to 24 and list the shares on the Philippine Stock Exchange on December 5. Chemrez Tech was formerly known as Corro-Coat before the powder coating firm acquired its affiliate Chemrez Inc., which manufactures resins and oleo-chemicals, including international grade biodiesel. The firm earlier said it expects full-year income to come in at P131.62 million, and further rise to P536.67 million in 2007, boosted by sales of BioActiv. - Patricia de Leon, GMANews.TV