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Axelum Resources Corp., a leading integrated coconut product manufacturer, and exporter, has reduced the maximum offer price of its planned initial public offering to P5.72 apiece.
The company initially set the maximum offer price of the IPO at P6.81 apiece
Axelum could potentially raise as much as P6.46 billion in fresh capital at P5.72 per share.
“By updating the maximum offer price, we aim to optimize investors’ interest and appetite in our local stock market, include more investors while still maintaining funding for our strategic plans,” said Axelum president Henry Raperoga.
Axelum plans to sell a maximum of 700 million in primary shares and up to 430 million in secondary shares.
Axelum will announce the final offer price on September 20. The offer period will run from Sept. 24 until Sept. 30, with the target listing date set on Oct. 7.
Axelum, which will carry the trading symbol AXLM, is the second of only three IPOs that have been approved by regulators so far this year.
The company plans to use the net proceeds from the primary offer to fund strategic acquisitions, expand its domestic and international distribution networks, install new manufacturing facilities for new products, and improve and expand existing plants. A portion of the proceeds will be used to retire loans, reduce payables, and fund other capital expenditure requirements.
First Metro Investment Corp., the investment banking arm of the Metrobank Group, is the issue manager, bookrunner and joint lead underwriter of the IPO, while BPI Capital Corp is the joint lead underwriter.
Axelum is one of the leading manufacturers and exporters of desiccated coconut, coconut milk powder, coconut milk/cream, reduced fat coconut, sweetened, toasted, roasted and desiccated coconut, and other coconut products. It is also a major manufacturer of coconut water for customers like Vita Coco, the leading coconut water brand in the world.
The company’s products are sold to domestic and international food and beverage companies, confectioneries, bakeries, private label supermarkets, and grocery store chains, food service industries, coconut coffee creamer manufacturers and diet prepared food market.
Other notable customers are prominent global brands like The Hershey Co., Nestle, Unilever, Ferrero, General Mills, Campbell’s, Quaker, Kellogg’s, Cadbury Schweppes and ConAgra Foods.