The Philippine Stock Exchange approved the P4.5-billion initial public offering of Iloilo-based meat vendor North Star Meat Merchants Inc.
North Star, based on the offer terms approved by the PSE, will offer a maximum of 360 million primary shares and 32 million secondary shares with an over-allotment option for another 58 million shares.
The IPO shares are priced at P10 apiece, but the final offer price will be determined on June 8 following a book-building exercise. The offering period is set from June 13 to 17.
The shares will be listed on the main board of the PSE on June 24 using the ticker symbol “NSTAR”.
“Domestic consumption is expected to remain among the drivers of the country’s post-pandemic economic recovery, with the food sector among the primary industries that will benefit from a resurgence in consumer spending. This environment is ideal for companies like North Star Meat Merchants, which is looking to raise funds for expansion,” said PSE president and chief executive Ramon Monzon.
The company said it would use the capital raised from the IPO to expand its cold chain infrastructure, improve operating cycle efficiencies and expand product lines and research and development work.
North Star will have a public float of 21.78 percent, assuming the over-allotment shares would be exercised.
The PSE said local small investors could subscribe to the IPO through the PSE EASy website or mobile application.
North Star started in Iloilo over two decades ago as a thesis project of business school student Anthony Mark Ng to become a major supplier of fresh meat products to the largest retailers in the country including the SM Group.
The company operates three cold chains serving over 1,250 stores nationwide, supported by 2,200 butchers. It also has 360 meat concessions nationwide.
It supplies frozen and fresh meat to 383 SM supermarket branches and Waltermart outlets.
The company has 8.09 million kilograms of company-owned cold storage capacity across the country and can deliver up to 120,000 kilograms of meat daily.
It plans to expand its main integrated plant in Bulacan province and build more facilities across the country to reach new markets.
The company tapped BDO Capital and Investment Corp. as the sole issue manager, which will be joined by China Bank Capital Corp. as joint lead underwriters and joint bookrunners. PNB Capital Investment Corp. and SB Capital Corp. will also serve as co-lead underwriters.