Coco producer eyes IPO

Integrated coconut product manufacturer Axelum Resources Corp. plans to sell as much as P7.7 billion worth of shares through a stock market debut later this year to fund its local and international expansion program.

“We hope to raise up to P7.7 billion at a price of up to P6.81 per share. The final offer price shall be determined prior to the scheduled listing of the IPO (initian public offering) hopefully in October of this year. We intend to sell up to 700 million primary shares and up to 430 million secondary shares,” Axelum chair Romeo Chan said in a statement on Friday.

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 produces high-quality coconut products including coconut water, desiccated coconut, coconut milk powder, coconut milk/cream, reduced fat coconut, sweetened coconut and coconut oil for domestic and international use and distribution.

The company traces its roots to Fiesta Brands Inc., which was established in 1986 to produce desiccated coconut and coconut milk powder.

Today, Axelum’s main production facility is in Medina, Misamis Oriental. It also owns two manufacturing and distribution facilities in the United States and Australia.

Axelum president Henry Raperoga said: “The net proceeds from the primary offer will be used to fund our strategic acquisitions, expand our domestic and international distribution networks, install new manufacturing facilities for new products, and improve and expand the company’s existing manufacturing facilities.”

Axelum’s coconut products are used by such firms as food and beverage companies, confectioneries, bakeries, coffee creamer manufacturers, and cosmetics producers.