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More companies close in on maiden share sale

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Kepwealth Property Phils. Inc. (KPPI) raised P384.4 million in its recent initial public offering. Shown in the Aug. 19 photo of its listing on the Philippine Stock Exchange’s Small Medium and Emerging Board are (from left): KPPI Corporate Secretary Robert Ivan F. Olanday; KPPI Treasurer John F. Catindig; KPPI Independent DirectorMark Anthony C. Migallos; KPPI Chairman Restituto T. Lopez; KPPI President Edmundo G. Las; KPPI Director Ignacio Salvador Gimenez III; PSE Chairman Jose T. Pardo; PSE President and Chief Executive Officer Ramon S. Monzon; PSE Director Ma. Vivian Yuchengco; PSE Directors Wilson L. Sy and Roberto Cecilio O. Lim; PSE Chief Operating Officer Roel A. Refran; PSE Corporate Secretary Aissa V. Encarnacion and PSE Director Alejandro T. Yu.

By Arra B. Francia
Senior Reporter

COCONUT PRODUCTS manufacturer Axelum Resources Corp. and home improvement retailer AllHome Corp. are one step closer to launching their market debuts after securing clearance from the Securities and Exchange Commission for their initial public offering (IPO).

In a statement issued Monday, the country’s corporate regulator said it has approved in its en banc meeting the IPO of Axelum Resources and AllHome, who plan to raise up to P7.695 billion and P20.7 billion, respectively.

In a preliminary prospectus posted on its Web site, Axelum Resources said it will offer 400 million treasury shares and 300 million new common shares to the public, alongside 430 million existing common shares held by CP Compass Singapore Pte. Ltd. The company has set a maximum offer price of P6.81 per share.

It has hired First Metro Investment Corp. as issue manager, bookrunner and lead underwriter for the transaction.

Under its timetable, the company looks to finalize the offer price by Sept. 19, with the offer period to run from Sept. 23 to 27.




It targets to list on the main board of the Philippine Stock Exchange (PSE) by Oct. 4.

Based on the sale of primary shares alone, Axelum Resources expects P4.408 billion in net proceeds from the IPO. Bulk of the proceeds will be used for the company’s target acquisitions in order to expand its reach further to the United States, Europe (including eastern Europe), Middle East and major countries in Asia.

Axelum Resources currently has its main production facility in Medina, Misamis Oriental. It also has two manufacturing and distribution facilities in the US and Australia, as well as distribution agents in key cities in the world.

Meanwhile, Villar-led AllHome plans to offer of up to 1.125 billion shares, consisting of up to 750 million primary shares and up to 375 million secondary shares. It will also offer up to 168.75 million shares as part of the overallotment option.

AllHome is looking at a preliminary offer price of up to P16 per share. Considering only primary shares, the company expects P11.46 billion in net proceeds from the sale which will be used for construction of 19 new stores this year and another 19 stores in 2020.

Part of the proceeds will also be used for debt repayment and general corporate purposes.

The company tapped UBS AG, Singapore Branch as the offer’s sole global coordinator and joint bookrunner. CLSA Limited and Credit Suisse (Singapore) Limited will act as joint bookrunners, while PNB Capital & Investment Corp will act as local lead underwriter. China Bank Capital Corp. will also serve as co-lead local underwriter.

AllHome targets to list its shares on the main board of the PSE by Oct. 1 after an offer period that will run from Sept. 18 to 24.

Both companies now await final clearance from the Philippine Stock Exchange, Inc. to proceed.

“I think the performance of AllHome and Axelum Resources will be dependent on the market sentiment on their IPO dates and how optimistic investors will be,” Timson Securities, Inc. Equity Trader Jervin S. De Celis said in a mobile phone message.

KEPWEALTH SOARS AT DEBUT
SEC’s approval comes after the maiden listing of property leasing and asset management company Kepwealth Property Phils, Inc. (KPPI) on Monday, where it raised P384.8 million.

“I was told that the company intends to use the funds from this share sale to diversify its asset base and acquire office space in key cities in Metro Manila to boost its total leasable space. Expanding its leasing portfolio bodes well for the company, especially as prospects of the property sector remains upbeat. The growth potential of KPPI will surely be promising once additional revenue is generated from its planned acquisitions,” PSE quoted its chairman, Jose T. Pardo, as saying in his welcome remarks during the company’s listing ceremony.

Shares in KPPI soared 41.99% or P2.41 to close at P8.15 apiece on its first trading day, riding general optimism at the PSE index, which increased by 142.37 points or 1.82% to finish 7,938.35.

“KPPI’s strong performance today may be attributed to the presence of day traders who took advantage of the wide price range of the stock as well as retail investors who chased the price when it started rallying,” Mr. De Celis said.

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