Axelum Resources Corp. pegged the final offer price for its planned initial public offering at P5 per share.
The lower IPO price prompted Axelum’s selling shareholder, CP Compass Singapore, to reduce the number of shares it would sell during the IPO to just 100 million shares from the original plan of 430 million shares.
“We decided to sell only 100 million shares instead of the initially planned 430 million shares after the final price was set as we believe Axelum is worth more than the set price of P5.00 per share,” said Jason Rosenblatt of CP Compass Singapore.
Axelum initially set the maximum offer price at P6.81 apiece.
Axelum will raise P4 billion from the sale of 700 million primary shares and 100 million secondary shares at the offering price of P5. the firm’s market capitalization is estimated to reach P20 billion upon listing.
The company plans to use the net proceeds from the primary offering to fund strategic acquisitions, expansion domestic and international distribution networks, new manufacturing facilities for new products and improvement of existing manufacturing facilities.
It will earmark a portion of the proceeds to retire loans, reduce payables and fund other capital expenditure requirements.
First Metro Investment Corp is the issue manager, book runner and joint lead underwriter of the IPO while BPI Capital is the joint lead underwriter.
Axelum is one of the leading manufacturers and exporters of desiccated coconut, coconut milk powder, coconut milk and cream, reduced fat coconut, sweetened and roasted desiccated coconut and other coconut products.
It is 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 in the domestic and international 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 include prominent global brands like The Hershey Co., Nestle, Unilever, Ferrero, General Mills, Campbell’s, Quaker, Kellogg’s, Cadbury Schweppes and ConAgra Foods.
Axelum’s main production facility is located in Medina, Misamis Oriental. It owns, through foreign subsidiaries, two distribution facilities strategically located in the United States and Australia.