News
Axelum Resources Corp. Plans Initial Public Offering
Thursday, July 4, 2019Local coconut products manufacturer-exporter is looking to raise up to P7.7 billion via an initial public offering (IPO) in October. In a statement, Axelum Resources Corp. said it has filed an application for an IPO with the Securities & Exchange Commission (SEC) and Philippine Stock Exchange (PSE). Romeo I. Chan, chairman of Axelum, said the company is planning to sell up to 700 million primary shares and up to 430 million secondary shares. “We hope to raise up to P7.7 billion at a price of up to P6.81 per share. The final offer price shall be determined prior to the scheduled listing of the IPO hopefully in October of this year,” Mr. Chan was quoted as saying. If approved, Axelum’s IPO could be one of the first to push through this year. The last company to go public at the local bourse was property developer D.M. Wenceslao & Associates Inc. in June 2018.
Axelum appointed First Metro Investment Corp. (FMIC), the investment banking arm of the Metrobank Group, as issue manager, bookrunner and lead underwriter of the IPO. Henry J. Raperoga, president of Axelum, said the company is planning to use the proceeds to ramp up its expansion. “The net proceeds from the primary offer will be used to fund our strategic acquisitions, expand our 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 our loans, reduce payables, and for other capital expenditure requirements,” Mr. Raperoga said.
Axelum is a fully integrated manufacturer of coconut products such as coconut water, desiccated coconut, coconut milk powder, and coconut cream for both domestic and international markets. Its main production facility is located in Medina, Misamis Oriental, while two manufacturing and distribution facilities are in the United States and Australia. The company supplies its products to international food and beverage companies, confectioneries, bakeries, supermarkets, and food service industry in United States, Canada, Australia, New Zealand, Eastern Europe, Europe, Middle East, Japan, and parts of Asia.
Its direct customer-base and end-users include global brands such as Vita Coco, The Hershey Co., ConAgra Foods, Kellogg’s, Quaker, Nestlé, Russell Stover, Unilever, Kroger, Mondelez International, Ferrero, Kraft Foods, General Mills, Campbell’s, Mars, Cadbury, Schweppes, and Calbee. Its retail products are Fiesta Coconut Milk Powder and Fiesta Tropicale Coconut Water.