COCONUT PRODUCTS manufacturer Axelum Resources Corp. reduced the maximum offer price for its initial public offering (IPO) to P5.72 per share, in a bid to attract more investors.

In a disclosure to the stock exchange Monday, the company said the lower price was made in consultation with First Metro Investment Corp., the issue manager, bookrunner, and joint lead underwriter for the IPO.

The price is 16% lower than its earlier target of up to P6.81 per share. Axelum will announce the final offer price on Sept. 20.

“By updating the maximum offer price, we aim to optimize investors’ interest and appetite in our local stock market, include more investors while still maintaining funding for our strategic plans,” Axelum President and Chief Operating Officer Henry J. Raperoga said in a statement.

With this, the company can raise up to P6.463 billion in fresh capital from the sale of 1.13 billion common shares. This consists of 400 million treasury shares, 300 million new common shares, and 430 million existing common shares held by CP Compass Singapore Pte. Ltd.

Axelum will have a public float of about 28.25% after listing.

The company’s offer period will run from Sept. 24 to 30, in time for listing at the main board of the Philippine Stock Exchange on Oct. 7. It will list under the ticker “AXLM.”

Axelum plans to use the proceeds from the offering for the expansion of its domestic and international distribution networks, installation of new manufacturing facilities for new products, and improvements for existing manufacturing facilities.

It will also use a portion of the capital for acquisitions. Mr. Raperoga said in an earlier interview that they have offers from companies in Vietnam and in the Philippines for potential deals.

Part of the proceeds will also be used to pay existing debt and other capital expenditure requirements.

The company currently has its main production facility in Medina, Misamis Oriental, with two distribution facilities in the United States and Australia. Its customers include international brands such as Vita Coco, The Hershey Co., Nestlé, Unilever, Ferrero, General Mills, Campbell’s, Quaker, and ConAgra Foods, among others.

Its products include desiccated coconut, coconut milk powder, coconut milk or cream, and reduced fat coconut, as well as other coconut products.

Axelum expects sales volume of coconut water to increase this year, although overall revenues may slump due to lower global prices for coconut oil, an official said last week.

Coconut water accounts for about 20% to 30% of the company’s business.

Axelum will be the second firm to go public this year after property asset management company Kepwealth Property Phils., Inc. last August. It will be followed by Villar-led home improvement supplies retailer AllHome Corp., which plans to raise P20.7 billion.

Also pending with the Securities and Exchange Commission are the IPO applications of Cal-Comp Technology (Philippines), Inc., Metro Pacific Hospital Holdings, Inc., and Fruitas Holdings, Inc. — Arra B. Francia

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