THE COUNTRY’S leading hybrid rice producer, SL Agritech Corp., is preparing to make a stock market debut, aiming to raise some P5 billion in fresh capital to expand farming, milling, seed processing and exporting capabilities.
SL Agritech plans to bring about 25 percent of its equity to public hands, company chair Henry Lim Bon Liong told the Inquirer, when asked whether an initial public offering (IPO) was in the pipeline after the recen P1-billion short-term commercial paper (STCP) issuance.
“It will most likely be in the third quarter of next year, since our fiscal year is end-May. The market cap size by then will be P20 billion,” Lim said. This means SL Agritech can raise P5 billion from the proposed IPO.
Proceeds from the stock debut, Lim said, would make SL Agritech a bigger player in the P450-billion Philippine rice market.
“We would like to serve 5 percent of the market in the next three years. We are also exporting our rice to the Middle East, America and other countries in the Pacific,” Lim said.
“I’m currently subcontracting 10,000 hectares yearly. I may have to increase my area by five times and I may need to put three more state-of-the-art rice mills in strategic locations,” he said.
Incorporated in 2000, SL Agritech is the only Philippine producer of hybrid rice seeds with fully integrated operation. The business has two segments: The production of hybrid rice seeds and premium rice.
“As far as our seeds department is concerned, we serve 300,000 hectares this year and we hope to expand to 500,000 hectares next year. We will be setting up our third seed processing plant by the third quarter of this year to meet the demand,” Lim said.
The company is positioning itself to be the Philippines’ leading proponent of hybrid rice farming technology.