Splash Group aims to raise P3B in planned IPO next year

Business MIrror

Feb 24, 2006

 

Splash Group aims to raise P3B in planned IPO next year By Honey Madrilejos-Reyes Correspondent THE Splash Group of Companies, a major player in the country's flourishing personal care industry, is eyeing to raise P3 billion in proceeds from its planned initial public offering (IPO) next year. In an interview at the sidelines of the Go Negosyo Entrepreneurship Summit and Expo Thursday, company chairman and chief executive officer Dr. Rolando Hortaleza said the expected proceeds would be used to bankroll the company's expansion plans both here and abroad. "We plan to create new markets and also expand our presence in Asia . Part of our expansion also is to develop and maintain a manufacturing hub here," he said. Splash will also be positioning itself in Thailand , where it plans to acquire a company to serve as a vehicle for its beauty care and nutritional products. The company has existing partnerships in Indonesia and distributorship agreements in Malaysia , Vietnam and Singapore . Splash will be the first company engaged in personal care industry to be listed at the stock exchange. It had just appointed Ernst & Young as its financial advisor for the public offering. Hortaleza, however, did not say the total volume of shares it intends to sell to the public as well as the exact timetable for the offering. Last year, Splash posted revenues of P5.2 billion and a net profit of P400 million. This year, Hortaleza said revenue growth is expected to be at 18 percent from the sale of its products and launch and its two new brands. The company was established in 1985 as a backyard enterprise with an initial capital of P12, 000. It produced fast-moving beauty salon products such as hair spray, cold-wave lotion, acetone, cuticle remover and benzalkonnium chloride. In 1998, Splash joined the ranks of the top 300 Philippine corporations. By year 2000, it became the 248th on the list. At present, it is the largest Filipino-owned company that competes strongly in an industry that has long been dominated by big multinational corporations. From the skin care retail outlets in the Philippines , Splash products are now in leading stores in Indonesia , Malaysia , and the Middle East . Given the close similarity of skin types of people from these countries and their suitability to the company's products, Splash is expected to become a major player in the Southeast Asian skin and personal care market in the next three years.