The company plans to offer 157.65 million primary common shares at an indicative price of P2 per share, with listing targeted for Nov. 17.
The sale price was a roughly 17 percent discount to its previous close of P2.42 each.
Who remembers Steniel?
Steniel, which was listed under the ticker STN in 1993, produces paper-based packaging materials and has been repositioning itself amid growing demand from the manufacturing and logistics sectors.
It was once the largest independent producer of corrugated boxes, which are sturdy, paper-based cartons used by manufacturers, retailers, and logistics firms to package and transport goods safely.
The company operates through two subsidiaries, Steniel Mindanao Packaging Corp. and Steniel Cavite Packaging Corp., which run its main production plants in Davao.
The Bunawan and Carmen plants each produce up to 64.5 million square feet of packaging monthly, while its General Santos facility adds another 6.6 million square feet in converting capacity.
Public offer starts today
The public offer will run from Nov. 3-7 with Investment & Capital Corp. of the Philippines as the sole issue manager and underwriter, while PSE trading participants will serve as selling agents, according to the share sale prospectus.
Of the total shares, 70 percent will be allocated to institutional investors and 30 percent to retail investors.
Steniel Manufacturing Corp. has spent most of its three decades under suspension after falling into financial distress in the mid-2000s. The company’s return marks a rare revival for a long-suspended listed firm.
Following a series of debt-to-equity conversions and share acquisitions, Steniel is now controlled by the STN Principals, a group led by Greenkraft Corp., Golden Bales Corp., Corbox Corp., and packaging entrepreneur Nixon Lim, who serves as chair, president, and CEO.
Lim, a De La Salle University physics graduate, is a veteran packaging entrepreneur and president of Greenkraft, Golden Bales, and Green Siam Resources.
Production, logistics expansion in Davao
It will use most of the proceeds from its share sale, around P250 million or 84 percent, to expand its logistics and production facility in Panabo, Davao del Norte, with the rest for working capital.
The expansion will add a 1.9-hectare warehouse to support growing demand and reduce leased storage costs.
Growth prospects
Euromonitor expects the Philippine corrugated packaging industry to grow by about 7 percent a year from 2024 to 2028, reaching $996.8 million by 2028, information on the share sale prospectus showed.
The growth will come from stronger trade, better logistics, and booming e-commerce, though rising costs and rival packaging options could slow it down, it added.
Tempered earnings
Steniel reported a net income of P27.43 million for the first half of 2025, down from P94.96 million a year earlier, as higher finance costs and foreign exchange losses weighed on earnings.
Revenues slipped slightly to P1.63 billion from P1.68 billion, while gross margin narrowed to 14.9 percent from 16.8 percent. As of June 30, 2025, total assets stood at P4.29 billion and debt-to-equity improved to 3.23 from 3.82 at the end of 2024.
How about dividends?
Steniel remains in a retained deficit of P841.8 million as of June 30, 2025, limiting its ability to declare dividends, though improved operations have steadily reduced losses since 2021, its prospectus showed.
—Edited by Miguel R. Camus
