Coco firm plans P7.7-billion offering

Published June 30, 2019, 12:00 AM

by manilabulletin_admin

By James A. Loyola

Coconut products producer Axelum Resources Corporation is seeking regulatory approved for its planned initial public offering (IPO) worth up to P7.7 billion.

In a statement, Axelum said it is a fully integrated manufacturer of coconut products including coconut water, desiccated coconut, coconut milk powder, coconut milk/cream, reduced fat coconut, sweetened coconut, coconut oil, and other coconut products for domestic and international use and distribution.

The firm is planning to sell 700 million primary shares and up to 430 million secondary shares at a price of up to P6.81 per share sometime in October this year.

The net proceeds from the primary offer will be used to fund strategic acquisitions, expand domestic and international distribution networks, install new manufacturing facilities for new products, and improve and expand the company’s existing manufacturing facilities.

A portion of the proceeds will also be utilized to retire loans, reduce payables, and for other capital expenditure requirements.

First Metro Investment Corporation, the investment banking arm of the Metrobank Group, has been appointed as issue manager, bookrunner and lead underwriter of the IPO.