SBS generated P1.15 billion in proceeds from its IPO in 2015.

Listed chemical trader-distributor SBS Philippines Corp. (SBS) bared plans to expand its business portfolio by investing in related assets and businesses.

In a disclosure, SBS said it is re-allocating majority of the balance of the proceeds from its initial public offering (IPO) to invest in its affiliates.

It said it will use P80 million of the P82 million balance as of December 2018 from its IPO to invest in its affiliates, including additional subscription to property company Smyte Phils. Holdings Corp.

SBS generated P1.15 billion in proceeds from its IPO in 2015.

In a separate disclosure, SBS said it will subscribe in a related company, real estate firm Goldchester Holdings Corp., “in line with the diversification plan of SBS Group.” SBS seeks to maintain its holding interest in Goldchester, its affiliate through the direct investment of its unit SBS Holdings and Enterprises Corp. (SBS Holdings).

“The dilution of the company’s interest in SBS Holdings inevitably resulted in an indirect dilution of its shareholdings in Goldchester,” it said.

“Thus, the company will subscribe to up to 7.75 percent holdings in Goldchester through share subscription, which together with its indirect 9.15 percent shareholdings via SBS Holdings, will help maintain its holding interest.”

SBS acquired a 17 percent equity stake in Goldchester in 2017 for P480.8 million as part of its diversification plans. Goldchester owns a 3.1-hectare prime real estate property along Balintawak in Quezon City, which is in close proximity to the LRT station, the Skyway extension and the Cloverleaf Balintawak projects.

Additionally, SBS said it will also acquire additional shares of its affiliate, Aychester Holdings Corp. via additional subscription.

“Aychester, an affiliate company of SBS, approved to increase its authorized capital stock. To maintain the company’s shareholding interest of 25 percent, it will have to subscribe to such increase,” SBS said.

SBS, which has been increasing its thrust in the property sector, is primarily engaged in the trading and warehouse distribution of chemical products. It sells chemicals used in manufacturing processes and as components of or ingredients in other products.

Shares of SBS were sold for P9.26 apiece as of Friday, up by 7.05 percent.