Big Chill plans IPO, sets sights on China market
THE COMPANY serving the Big Chill fruit shake brand is looking to debut on the stock exchange this year to accelerate its expansion in the “Greater China Region” amid improving relations between Manila and Beijing.
In a statement issued yesterday, The Big Chill, Inc. (TBCI) unveiled plans to raise P500-600 million through an initial public offering (IPO) to bring homegrown brands Big Chill and Fresh Bar as well as the Tully’s Coffee franchise to more cities in China.
“With the craze for Japanese-themed food chains in Asia, the combined Tully’s and Big Chill stores are expected to be well accepted by consumers in Asia,” the company noted, citing the Greater China Region as the most promising market for its products.
TBCI was established in 1994 to serve beverages made from fresh fruits and vegetables mainly to the upper segments of the market through a network of shops and kiosks.
The company then expanded the concept to include a line of hearty gourmet soups, healthy pasta offerings, fresh salads and sandwiches under the Fresh Bar brand.
It also brought the franchise of Tully’s — a coffee brand that originated in Seattle — for Asia and the Pacific.
The business of TBCI, which started offering franchises in major cities in the Philippines and Asia only in recent years, complements that of parent Agrinurture, Inc. (ANI) within and outside the country.
The publicly listed firm, which engages in the trading and distribution of fresh fruits and vegetables in the Philippines, acquired TBCI about six years ago to realize its vision of becoming a global leader in providing nutrition from farm to fork. ANI engages in the management and operation of food and beverage outlets catering to different market segments in Manila, Hong Kong and Xiamen.
It has eight food and beverage brands under TBCI, which expects to generate P5 billion in revenues a year.
The listed company targets to expand its operations into Taipei and Xuzhou,
after the break for the celebration of the Lunar New Year there.
As part of the planned listing, TBCI will issue warrants to qualified shareholders of ANI, the parent told the stock exchange on Monday.
Investors owning at least 2,000 ANI shares as of Feb. 3 are entitled to one warrant to acquire one TBCI share at P1.
The warrant comes with a fiveyear American call option from the date of board approval or until Jan. 19, 2022.
LIST OF IPO HOPEFULS GROWING
TBCI adds to the list of companies seeking to debut on the Philippine Stock Exchange (PSE) this year.
Last month, Bermaz Auto Bhd sought approval from the Securities and Exchange Commission (SEC) to raise P1.24 billion.
Also pending before the SEC are applications from Pure Energy Holdings Corp.; Wilcon Depot, Inc.; Xeleb Technologies, Inc. and Audiowav Media, Inc., which proposed to raise P1.58 billion, P7.92 billion, P751.8 million and P2.66 billion, respectively.
TVI Resource Development ( Philippines), Inc.; Pointwest Technologies Corp. and Green Power Panay Philippines, Inc., meanwhile, have yet to advance their plans to undertake IPOs amounting to P1.66 billion, P2.21 billion and P222.8 million.
TVI Resource has since shelved its plan amid uncertainties over the government’s adversarial stand on mining.
Capital raised from the bourse amounted to P170.12 billion last year. This settled below the P184.60 billion recorded for 2015 amid uncertainty in the first half over the leadership change in the Philippines, direction of interest rates in the United States and the decision of the United Kingdom (UK) to leave the European Union (EU).
Only four companies braved the uncertainty gripping the stock exchange last year: Golden Haven Memorial Park, Inc.; Cemex Holdings Philippines, Inc.; Pilipinas Shell Petroleum Corp.; and Shakey’s Pizza Asia Ventures, Inc.
As the looming interest rate hikes in the United States — as many as three, according to the Federal Reserve — and UK’s exit from the EU continue to stoke volatility, the PSE decided to maintain its target of facilitating P200 billion worth of IPOs, follow- on offering and other fund- raising activities for 2017 given the number of companies looking to go public.