Axelum Resources Corp., an export-oriented manufacturer of premium coconut products, plans to raise as much as P7.7 billion through initial public offering scheduled in October this year.
Axelum said in a statement it filed an application with the Securities and Exchange Commission to sell up to 700 million in primary shares and 430 million in common shares at price of up to P6.81 apiece.
“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,” said Axelum chairman Romeo Chan said.
Axelum is a fully integrated maker of high quality coconut products, including coconut water, desiccated coconut, coconut milk powder, coconut milk/cream, reduced fat coconut, sweetened coconut, coconut oil, and other coconut products for domestic and international use and distribution.
The company hired First Metro Investment Corp., the investment banking unit of the Metrobank Group, as issue manager, book-runner and lead underwriter of the IPO.
Axelum president Henry Raperoga said the company would use the net proceeds from the primary offer to fund strategic acquisitions, widen domestic and international distribution networks, install new manufacturing facilities for new products, and improve and expand the company’s existing manufacturing facilities.
The company will use a portion of the proceeds to retire the company’s loans, reduce payables, and fund other capital expenditure requirements.
Axelum’s full line of coconut products are used by international food and beverage companies, confectioneries, bakeries, private label supermarkets and grocery store chains, food service industries, coconut coffee creamer manufacturers, cosmetics and diet prepared food market.
It has built and expanded its direct or indirect customer base and end-users to include prominent global brands like Vita Coco, The Hershey Co., ConAgra Foods, Kellogg’s, Quaker, Nestle, Russell Stover, Unilever, Kroger, Mondelez International, Ferrero, Kraft Foods, General Mills, Campbell’s, Mars, Cadbury Schweppes and Calbee.
The company’s main production facility is located in Medina, Misamis Oriental province.