Jose Mari Chan’s family gets early Christmas present as sugar mill IPO gets SEC nod

ABS-CBN News

Posted at Sep 02 2021 10:35 AM

Jose Mari Chan during an interview at his mother's home in Ayala Alabang. Alfredo Ruzol, ABS-CBN News file photo
Jose Mari Chan during an interview at his mother's home in Ayala Alabang. Alfredo Ruzol, ABS-CBN News file photo

MANILA - The arrival of the “Ber” months also brought an early Christmas blessing for the family of singer Jose Mari Chan as their sugar company’s application for public listing got the nod of regulators. 

The Securities and Exchange Commission (SEC) on Sept. 1 announced that it approved the initial public offering of Central Azucarera de San Antonio (CASA) during a meeting on Aug. 31. 

CASA will offer 277,500 common shares, consisting of 214,551new common shares by way of a primary offer and 62,949 secondary shares offered by a selling shareholder, priced at up to P2,012.52 per share, the SEC said. 

“The Chan-owned company primarily operates a sugar milling business, but also engages in power generation through a biomass cogeneration plant with an initial installed generation capacity of 15 megawatts,” the regulator noted. 
 
The SEC said CASA will use net proceeds from the primary offer, estimated at P422 million, to upgrade its cogeneration facility, motor pool, and sugar factory, as well as for land acquisitions and farm mechanization. 

“CASA will not receive proceeds from the sale of secondary shares, which is expected to yield over P115 million in net proceeds.”

SB Capital Investment Corporation will be the issue manager and underwriter for the offer. 

Chan, whose single “Christmas in Our Hearts” has become a staple of Filipino Yuletide music diet, is also a businessman engaged in the sugar industry through the Binalbagan-Isabela Sugar Company Inc. and A. Chan Sugar Corporation. 

Last year, Chan said the Philippine sugar industry faces challenges from cheap imports as well as diminished productivity. 

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