A slew of initial public offerings in the second half are stirring Philippine Stock Exchange investors and may lure back foreign funds to the local equities market.
After a dearth of IPOs in the first half amid the volatile market conditions, investors can now look forward to the IPOs of All Home Corp., Axelum Resources Corp., Cal-Comp Technology (Philippines) Inc. and Metro Pacific Hospital Holdings Inc. (MPHHI).
Axelum and All Home secured regulatory approvals to push through with their IPOs while the applications of Cal-Comp and MPHII are now being evaluated by the Securities and Exchange Commission and the PSE.
Except for Axelum which is targeting only the domestic investors, All Home, Cal-Comp, and MPHHI are allocating up to 70 percent of their offer shares to international investors which, according to analysts, would fuel an increase in foreign fund flows.
“We are excited with the back-to-back maiden offerings as we know investors have been waiting for IPOs in the stock market. We are pleased that Axelum and AllHome decided to raise capital through the equities market as both companies are a welcome addition to the roster of listed firms in the Exchange,” said PSE president and chief executive Ramon Monzon.
Axelum is one of the leading manufacturers and exporters of coconut water and the company behind Vita Coco, the global leader in coconut water.
The company plans to offer up to 1.13 billion shares at P6.81 per share to raise as much as P7.7 billion in proceeds. The offer period will run from Sept. 24 to Sept. 30 while the target listing date is Oct. 7.
The net proceeds from the primary offer will be used to fund the company’s strategic acquisitions, expand its 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 used to retire the company’s loans, reduce payables and for other capital expenditure requirements.
“We are very excited about Axelum’s debut in the equities market. We think this is the investment opportunity that investors have long been waiting for,” First Metro Investments Corp. president Rabboni Francis Arjonillo said.
“The company is poised to continue its market leadership and is well-positioned to expand its market base because it is one of the most complete players in the coconut industry given its access to raw material inputs, diversified portfolio of high-quality coconut products, exclusive and company-owned distribution facilities, and strong relationship with well-established customers,” Arjonillo said.
AllHome, a home furnishing chain owned by the country’s richest man Manuel Villar, is looking to raise up to P20.7 billion in proceeds.
Under the plan, AllHome will sell up to 1.1 billion common shares, representing 34.5 percent of the company’s outstanding capital stock, at an offer price of up to P16 apiece. Net proceeds from the IPO will be earmarked to fund store expansion.
All Home is slated to open 18 new stores in the second half and another 25 new stores in 2020. As of end June 2019, the company had 25 All Home stores with a net selling space of 196,327 square meters across 20 cities and municipalities.
All Home tapped UBS AG, Singapore Branch as the sole global coordinator and joint bookrunner, CLSA Limited and Credit Suisse (Singapore) Limited as joint bookrunners and PNB Capital and Investment Corp. and China Bank Capital Corp. as domestic underwriters.
Cal-Comp, a consumer electronics producer owned by Taiwan-based New Kinpo Group, also revived its IPO plan and expects to raise as much as P10.67 billion in proceeds.
The company’s registration statement filed with the SEC showed it would sell up to 371,423 million primary common shares with an over allotment of up to 55,713 million common shares at an offer price of up to P25 apiece.
The offer shares would represent 25.1 percent of the issued and outstanding capital stock of the company after the IPO. Net proceeds from the maiden share offering will be used to finance facilities expansion, capital expenditure, debt repayment, research and development and working capital.
Cal-Comp’s expansion program involves the construction and development of phase 3 of its Lima manufacturing complex in Lipa, Batangas. The expansion will add 25,000 square meters of manufacturing space.
MPHHI, the operator of some of the country’s largest hospital chains, plans to raise more than P80 billion, potentially the country’s biggest equity offering.
MPHHI, owned by conglomerate Metro Pacific Investments Corp., will sell up to 35.821 million primary shares and up to 381.271 common shares with an over-allotment option for another 40.771 common shares at an offer price of P182 apiece.
MPHHI will raise P6.5 billion from the sale of primary shares which will be used to invest in additional hospitals, cancer centers, clinics and new healthcare businesses and fund the expansion of existing hospitals.
MPIC, the selling shareholder, will raise P75.1 billion, to fund the expansion of other businesses including toll roads, power generation and water distribution.
