COCONUT manufacturer Axelum Resources Corp. has its initial public offer (IPO) at P5 per share, and also reduced the secondary offer to 100 million secondary shares from an earlier planned 400 million shares.
This will gross for the company P4 billion, some 700 million of which are primary shares and 100 million secondary shares, in an offer that will run on, and with a target listing date of October 7, 2019.
Previously, the company offered its IPO price at P5.72 per share at an offer size of P6.46 billion.
Axelum will carry the trading symbol AXLM in the main board of the Philippine Stock Exchange. Market capitalization is estimated to reach P20 billion upon listing.
“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 per share,” Axelum Director Jason Rosenblatt said.
First Metro Investment Corp., the investment banking arm of the Metrobank Group, is the issue manager, bookrunner and joint lead underwriter. BPI Capital Corp. is also joint lead underwriter.
The IPO’s proceeds from the primary shares 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 utilized to retire the company’s loans, reduce payables and fund other capital expenditure requirements.