Philab shelves follow-on offering worth P3.4 billion

PHILAB Holdings Corp. has withdrawn its application to conduct a follow-on offering of up to P3.4 billion.

In a disclosure to the stock exchange on Tuesday, Philab, which underwent a backdoor listing through Alterra Capital Partners, Inc., said it is deferring the listing of up to 500 million common shares at the Philippine Stock Exchange.

The company cited a request from China Bank Capital Corp., the offer’s underwriter, asking for sufficient time to conduct a due diligence review on the company as the reason for the withdrawal of the application.

“Further, after conferring with its advisors, the company has determined that the launching of such a follow-on offering at this time may not be the best course of action for the company. Instead, the company will benefit from this period by consolidating its business lines and prospects,” Philab said.

Alterra filed a registration statement for a follow-on offering at the Securities and Exchange Commission last January, with the intention of issuing a maximum of 500 million common shares with a price range of between P3.25 and P6.75.

Philab added that the listing would be deferred to a later time, “without prejudice to a possible re-filing by the company of such application in 2018.

The company widened its net loss attributable to the parent to P31.65 million for the second quarter of 2017, from the P270,948 recorded in the same period in 2016.

Shares in Philab closed at P5.10 each at the stock exchange on Tuesday, down by 10 centavos or 1.92%.