Corporate News

Farm supplier prepares IPO

Posted on December 30, 2011

IN WHAT could be among the first listing debuts for 2012, farming supplement distributor Calata Corp. has filed a prospectus with regulators for a P270-million initial public offering.

A MAN looks at data being flashed at the Philippine Stock Exchange in this file photo. Calata Corp. plans to list on the bourse. -- Jonathan L. Cellona
Calata, a Bulacan-based retailer of seeds and feeds, plans to sell 36.0132 million shares at up to P7.50 apiece under a primary offer that is seen to raise P242.358 million in proceeds excluding fees and expenses.

It will then go on to issue another 36.012 million shares, but “will not receive any proceeds from the secondary offer”, a prospectus received by the Securities and Exchange Commission (SEC) on Dec. 28 and made available to BusinessWorld yesterday showed.

The total shares on offer represent a 20% stake in the firm, which has raised its capital stock to P845.40 million this year since first registering as Planters Choice Agro Products, Inc. in 1999.

The selling date was not specified yet in the prospectus.

“The net proceeds that will be generated from the offer will be used primarily by the company to establish additional distribution outlets nationwide and for general working capital requirement,” the document read.

A bulk of the net proceeds -- P180 million--will be spent on inventories while the P36 million will be allotted for “site development and [a] building structure” the prospectus stated. The remaining P26.358 million will go into working capital.

The company has tapped Unicapital, Inc. as its underwriter while it has appointed BDO Unibank, Inc. Trust and Investment Group as it stock transfer agent.

The SEC’s corporate finance department said it has yet to review the offering of Calata Corp.

After the department deems the Caliata as compliant, it will endorse the firm’s IPO bid to the commission for en banc approval.

In the meantime, Calata Chairman and Chief Executive Joseph H. Calata, who is in his thirties, controls 67.17% of the firm, a figure that will drop down to 60.45% after the share sale.

Calata posted P88.164 million in comprehensive income for January to September this year, tripling the P24.09 million it recorded in same period last year as cost of sales fell while finance and “other” income grew.

The company’s revenues reportedly comes primarily from the sale of agrochemicals, feeds, fertilizers, and veterinary products in the country.

Other companies that have indicated interest in conducting an initial offering next year include property developers ACM Landholdings, Inc., Ortigas & Co. Ltd. and Rockwell Land Corp.

This year, five companies listed on the bourse, namely Megawide Construction Corp., Puregold Price Club, Inc., Cirtek Holdings Philippines Corp., Calapan Ventures, Inc., and Touch Solutions, Inc. -- Cliff Harvey C. Venzon