SEC greenlights Axelum, AllHome IPO

The Securities and Exchange Commission (SEC) has cleared the applications of coconut product manufacturer Axelum Resources and Villar-led home improvement retailer AllHome Corp., paving the way for two more initial public offerings this year after Kepwealth Property Phils. Inc.’s (KPPI) stock market debut on Monday.

In a statement, the corporate regulator said it has approved the Axelum and AllHome’s plan to raise up to P7.7 billion and P20.7 billion in fresh capital, respectively.

Axelum, which initiall priced its offering at P6.81 per share, will be putting out 700 million primary shares and up to 430 million secondary shares offered by CP Compass Singapore Pt. Ltd.

The firm will have 4 billion outstanding common shares after the maiden offering, with 28.25 percent under new investors. Axelum intends to use the funds it will raise on strategic acquisitions, facility improvement and expansion, retirement of loans and reduction of payables and other capital expenditure needs.

Among the manufacturer’s export destinations are United States, Canada, Australia, New Zealand, Eastern Europe, Europe, Middle East, Japan and major countries in Asia.

On the other hand, AllHome is planning to sell up to 1.125 billion primary and secondary shares with an overall allotment option of up to 168.75 million common shares. It set initial selling price at P16 per share.

The offer shares stand for 34.5 percent of AllHome’s issued and outstanding capital stock, which will comprise a total of 3.75 billion shares after the firm has conducted its IPO and assuming full exercise of the overall allotment option, SEC said.

AllHome said it will use the proceeds from the fundraising activity for capital expenditures and initial working capital to expand its store network, repay debt and allot for general corporate purposes.

Meanwhile, KPPI which listed at the stock exchange on 19 August saw its share value rise 41.99 percent on its first trading day. From its offer price of P5.74 apiece, shares of KPPI were sold for P8.15 per share by the closing bell. The property investor’s shares were traded at an intraday high of P8.49.

KPPI may see some profit-taking in the short run following its “quick ascent,” but added that its shares could trade near current levels given its fundamentals.