Coconut Products Maker Axelum Resources Eyes Raising $76.7m In Philippines IPO

Axelum Resources Corp, an integrated coconut product manufacturer in the Philippines, has priced its initial product offering at 5 pesos ($0.10) per share to raise up to 4 billion pesos ($76.7 million) in the local stock exchange.

The final pricing is lower than the original target of 5.72 pesos per share and an offer size of 6.46 billion pesos ($124 million) when Axelum first filed its prospectus in July.

Axelum will compete for fund allocation against other upcoming IPOs in the country as listing activity gradually picks up from a depressed 2018 that saw only one company make a market debut and raise about $150 million.

In a statement, Axelum said it would sell up to 700 million primary common shares plus 100 million existing common shares or part of the shares held by Singaporean private equity firm CP Compass Singapore Pte. Ltd.

Axelum will carry the trading symbol AXLM in the main board of the Philippine Stock Exchange. Market capitalisation is estimated to reach 20 billion pesos ($383 million) upon listing.

In its final prospectus, the company said it will use the net proceeds to finance strategic acquisitions and expand its domestic and international distribution networks.

Axelum will also install new manufacturing facilities for new products and expand its existing facilities.

First Metro Investment Corp., the investment banking arm of the Metrobank Group, has been appointed issue manager, bookrunner and lead underwriter of the IPO.

Axelum is an export-oriented manufacturer of premium coconut products that are used by such firms as food and beverage companies, confectioneries, bakeries, coffee creamer manufacturers, and cosmetics producers. It also owns two manufacturing and distribution facilities in the United States and Australia.

Among the upcoming IPOs in the Philippines is that of Fruitas Holdings Inc (Fruitas), a local food and beverage kiosk operator, which has filed to raise up to 1.2 billion pesos ($23 million) in an IPO with the local Securities and Exchange Commission (SEC).

AllHome Corp, a home furnishing chain owned by the Philippines’ richest man Manny Villar, is also looking to raise up to 18.1 billion pesos ($347.69 million).

The Philippines’ largest hospital chain, Metro Pacific Hospitals Holdings Inc, has also filed for an IPO, with plans to sell as much as 457.86 million shares, including over-allotment option, at a maximum price of 182 pesos ($3.47) per share.

In July, Kepwealth Property Phils, a former subsidiary of Singapore-based Keppel Corporation, has received the go-ahead from the PSE for a listing in which it seeks to raise up to $7.5 million.