Big Chill wants to shake things up in market debut

Beverage retailer The Big Chill Inc. (TBCI), a subsidiary of publicly listed Agrinurture Inc. (ANI), plans to debut on the local stock market this year with an offering worth as much as P600 million to fund an expansion program in Greater China.

Banking on rekindled bilateral ties between China and the Philippines following President Duterte’s visit to Beijing last October, TBCI said in a press statement Monday that the public outing would fund its offshore expansion.

Ahead of this equity exercise, the TBCI board approved the issuance of warrants in favor of qualified shareholders of parent firm ANI as of Feb. 3, 2017.

A warrant gives the holder the right, but not the obligation, to buy or sell a security at a certain price before expiration. The price at which the underlying security can be bought or sold is referred to as the exercise price or strike price.

In this case, a shareholder of ANI owning at least 20 shares will have the right to avail of one TBCI warrant at the strike price of P1 or based on TBCI par value, with a five-year American call option that will expire on Jan. 19, 2022. One warrant will be equivalent to one TBCI share.

The proposed initial public offering is expected to range from a low of P500 million to as high as P600 million, a company spokesperson said.

TBCI owns the brands Big Chill and Fresh Bar and is the franchisor of Tully’s Coffee in the Asia-Pacific region. In recent years, it started offering franchises in major cities in the Philippines and Asia.

“With the craze for Japanese-themed food chains in Asia, the combined Tully’s and Big Chill stores are expected to be well accepted by consumers in Asia,” TBCI said.

TBCI was established in 1994 as a new concept serving premium quality blended shakes made with 100 percent fresh-cut fruit, targeting mainly the AB and upper C market segments through its network of shops and kiosks that provide convenient access to fresh fruit shakes. Its parent firm ANI has been supplying raw materials to the food service sector in Asia for the last two decades following the farm-to-plate model.

The Fresh Bar, meanwhile, is an expanded concept of Big Chill, which offers the same fresh fruit shakes along with a line of gourmet soups, healthy pasta offerings, fresh salads and sandwiches.

Tully’s is a famous coffee brand that originated in Seattle and outperformed Starbucks in Japan.

Both The Big Chill and Fresh Bar brands provide new food service beverage concepts seen appealing to people with healthy and fast-paced lifestyles.

ANI, which is engaged in the trading and distribution of fresh fruits and vegetables in the Philippines, acquired TBCI in 2011. The company is engaged in the management and operation of food and beverage outlets under a range of brands that cater to different market segments in Manila, Hong Kong, and Xiamen. It plans to foray into Taipei and Xuzhou after the lunar new year break.

“Under ANI’s management, TBCI is projected to churn revenues close to P5 billion a year,” the statement read.