MANILA -- The Securities and Exchange Commission (SEC) has cleared the way for coconut product manufacturer, Axelum Resources Corp., and home improvement retailer AllHome Corp. to debut on the stock market.
In its August 19 meeting, the SEC en banc approved the initial public offerings (IPOs) of Axelum Resources and AllHome to raise as much as PHP4.767 billion and PHP12 billion in fresh capital, respectively.
Axelum Resources and AllHome intend to list their common shares on the Philippine Stock Exchange (PSE), following the stock market listing of Kepwealth Property Phils., Inc. on August 19.
Axelum Resources
Axelum Resources will offer 400,000,000 treasury shares and 300,000,000 new common shares, along with 430,000,000 existing common shares offered by CP Compass Singapore Pte. Ltd.
After the maiden offering, it will have a total of 4,000,000,000 common shares outstanding, with 28.25 percent in the hands of new investors.
To facilitate the offer, the company appointed First Metro Investment Corporation and BPI Capital Corporation as joint lead underwriters.
Axelum Resources expects to net PHP4.408 billion from the primary offer composed of treasury shares and new common shares, based on a maximum offer price of PHP6.81 per share.
The fresh capital is earmarked for strategic acquisitions (42 percent), expansion of domestic and international distribution network (12 percent), installation, improvement and expansion of manufacturing facilities (11 percent), retirement of loans and reduction of payables (18 percent) and other capital expenditure requirements (17 percent).
Axelum Resources is a fully integrated manufacturer of coconut products for domestic and 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.
The company’s main production facility is located in Medina, Misamis Oriental. It also owns two manufacturing and distribution facilities in the United States and Australia.
Its products are distributed through distribution agents in various key cities of the world that caters to desiccated and other coconut-meat based products.
Its streamlined distribution network enables Axelum Resources to export and distribute its products in major markets around the world such as the United States, Canada, Australia, New Zealand, Eastern Europe, Europe, Middle East, Japan, and major countries in Asia.
AllHome
AllHome, meanwhile, will offer 750,000,000 new common shares along with 375,000,000 existing common shares currently held by AllValue Holdings Corp., which has the option to offer 168,750,000 more.
The offer shares represent 34.5 percent of the company’s issued and outstanding capital stock, which will comprise a total of 3,750,000,002 shares after the maiden offering and assuming full exercise of the over-allotment option.
AllHome tapped UBS AG, Singapore Branch as sole global coordinator and joint bookrunner, CLSA Limited and Credit Suisse (Singapore) Limited as joint bookrunners, and PNB Capital and Investment Corporation and China Bank Capital Corporation as domestic underwriters.
At a maximum offer price of PHP16 per share, the company expects to net PHP11.4606 billion from the primary offer. It earmarked the amount for capital expenditures and initial working capital for store network expansion (PHP6.2093 billion), debt repayment (PHP4.6494 billion) and general corporate purposes (PHP601.9 million).
AllHome is a one-stop shop home store in the Philippines. Since incorporating in 2013, it has opened 27 stores with an aggregate net selling space of about 215,994 square meters (sq.m.) across 22 cities and municipalities.
The company, which intends to list at the PSE under the ticker symbol “HOME,” will open 18 more stores before the yearend and 25 more in 2020, using funds raised from its maiden offering. (PR)
