Chemrez offering at least 3 times oversubscribed

Alternative fuel maker Chemrez Technologies' shares offering was at least three times oversubscribed, analysts said on Wednesday. The company, formerly known as Corro-Coat Inc., had offered 340.91 million new shares. The company had changed its name to Chemrez Technologies to reflect its entry into the biofuel, resins and specialty chemicals businesses. The shares were priced at P4.40 a piece, near the top end of the indicative range of P3.90 to P4.90. "The Chemrez public offer is very well received by investors since a lot of them are very positive about the bio-diesel story," said Macquarie research head Gilbert Lopez who noted that the firm has the first continuous process biodiesel plant in Asia. Abacus Securities institutional sales head Jet Lazaro said demand reached at least four times more than their allocated shares. Unicapital Inc. equities research head Ron Rodrigo said the stock was three times oversubscribed at his office. AB Capital Securities president Bert Santos said his office received orders for 25 million Chemrez shares, noting it was easily the most oversubscribed public offer this year since the passage of the Biofuel bill was imminent at the time of the offer. Chemrez was hoping to raise P1.5 billion from the offering to pay debts to retire the company's obligations to D&L Industries, amounting to P667 million. Corro-Coat had acquired a biodiesel plant designed, developed, constructed and financed by D&L and Chemrez. The shares will start trading on the Philippine Stock Exchange on December 4. - GMANews.TV