Axelum Resources eyes P7.7 B IPO

Axelum Resources Corp., producer of high quality coconut products, is planning to do a P7.7 billion initial public offering possibly in October.

The company has already filed with the Securities and Exchange Commission (SEC) an application to do the IPO.

Axelum, chaired by businessman Romeo Chan, is a fully integrated manufacturer of high quality coconut products including coconut water, desiccated coconut, coconut milk powder, coconut milk and reduced fat coconut.

“We hope to raise up to P7.7 billion at a price of up to P6.81 per share,” Chan said.

The final offer price shall be determined prior to the scheduled listing of the IPO, hopefully in October of this year, he said.

“We intend to sell up to 700 million primary shares and up to 430 million secondary shares,” he said.

Axelum has tapped First Metro Investment Corp., the investment banking arm of George Ty-owned Metrobank Group as issue manager, bookrunner and lead underwriter of the IPO.

Axelum president Henry Raperoga said net proceeds from the primary offer would be used to fund the company’s strategic acquisitions, expand its domestic and international distribution networks, and install new manufacturing facilities for new products.

It would also improve and expand the company’s existing manufacturing facilities.

“A portion of the proceeds would also be utilized to retire our loans, reduce payables, and for other capital expenditure requirements,” Raperoga said.

Axelum’s 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.

Its direct or indirect customers and end-users include 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 while its products are widely distributed in major markets such as the United States, Canada, Australia, New Zealand, Eastern Europe, Europe, Middle East, Japan, and some countries in Asia.

FMIC, meanwhile, is the investment banking arm of the Metrobank Group. Its products and services include debt and equity underwriting, loan syndication, project finance, financial advisory, government securities and corporate debt trading, equity brokering, asset management and research.