Fruit exporter planning to hold IPO this year
Raising funds for expansion program
By Elizabeth Sanchez-Lacson
Philippine Daily Inquirer
First Posted 23:37:00 02/10/2008
Filed Under: Financing, Stock Offerings
FRUIT exporter Agrinurture Inc. (ANI) is considering an initial public offering this year to raise P1 billion for the expansion of its farming operations, company president Antonio L. Tiu said.
During the company's new corporate name launch Friday night, Tiu said ANI, formerly Mabuhay 2000 Enterprises Inc., is closely watching market conditions in line with plans to offer stocks to the public.
"We're waiting for the right timing. Let's wait for a rebound. Without that, there won't be any investor interest," Tiu said.
He said the company was considering to hold the offering after the Holy Week in March.
ANI said it wanted to expand the capacity of its farming division.
"We don't plan to acquire additional farm land. We would like to go into mass scale farming through an agricultural REIT (real estate investment trust). A bill on REITs is still pending with the Senate and Congress. After our listing, we will launch our plan to get into mass scale farming," Tiu said.
REITs are sold like stocks and are invested in real estate directly either through property or mortgages.
REITs receive tax perks and typically offer investors higher yields, as well as a highly liquid method of investing in real estate.
Tiu said proceeds raised from the proposed IPO would also be used for the acquisition of factories that are into processing of fruits and other related businesses.
Tiu said the company generates sales of more than P1 billion a year, 20 percent of which comes from the export of mangoes, coconuts, papaya, banana, pineapple, and honey lemon fruits.
It expects to grow its revenue to more than P5 billion this year once it has put in place its expansion after its proposed IPO.
ANI was formed in 1997 and is now producing fresh, frozen and dried fruits, processed fruits and fresh vegetables.
Aside from exporting to a number of countries like Thailand, Vietnam, Indonesia, China and Hong Kong, the company also sells fruits and vegetables to all SM supermarkets and hypermarkets.
Its plantations are in Zambales, Cavite, Pangasinan, Tarlac and Antipolo.
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