ORCA Cold Chain Solutions, a local cold storage firm, is planning an initial public offering worth up to P1.5 billion prior to listing at the Philippine Stock Exchange’s Small, Medium and Emerging Board.
Based on the prospectus provided by the company, it is planning to offer a total 1.48 billion common share consisting of 1.04 billion primary shares and 444.8 million secondary shares with an over-allotment option of 222 million shares.
Of the 444.8 million secondary shares in the firm offer, 266.88 million issued shares are being sold by ISOC Holdings, Inc. (IHI) while 177.92 million are being divested by Philware Magnate, Inc.
Of the 222 million option shares, up to 133.2 million shares are owned by IHI and 88.8 million shares are owned by PMI.
The shares have a par value of P0.10 each and will have an offering price of up to P0.88 per share. The total offer shares, including the over-allotment option, will be equivalent to about 23 percent of ORCA’s outstanding capital stock after the IPO.
The firm is registered as ISOC Cold Chain Logistics, Inc. but is doing business as ORCA Cold Chain Solutions.
The Company expects to raise gross proceeds of up to P910.98 million from the primary portion of the IPO. The net proceeds, estimated to be P841.11 million, will be used for expansion of existing facilities to accommodate other value-added services; development of new cold storage facilities, new business initiatives; and general working capital.
ORCA is a pioneering company that utilizes the latest technology and process innovation to the cold storage industry. Incorporated on October 20, 2017, ORCA provides technology-driven cold chain solutions, specifically the development and operation of temperature-controlled warehouses in the Philippines.
The company is 60 percent owned by IHI, a diversified conglomerate with interests in logistics, power, property, and infrastructure. PMI owns the remaining 40 percent.
ORCA has two operating subsidiaries with their respective facilities and a combined capacity of 34,342 pallet positions, equivalent to over 34.3 million kilograms: Arendelle Cold Logistics Inc., located in Taguig; and Eisberg Cold Logistics, Inc., located in Caloocan. Both facilities have been awarded a pioneer status by the Board of Investments (BOI).
ORCA has developed the first cold storage facility equipped with a fully automated storage and retrieval system (ASRS) in the country .
ASRS, in conjunction with ORCA’s in-house warehouse management system (WMS) intelligently transports, stores, and retrieves pallets within its cold storage facility.
To date, ORCA is one of the few cold storage providers that employ ASRS technology in the Philippines.