Coconut products maker Axelum Resources eyes raising $76.7m in Philippines IPO

A trader takes orders on a telephone at the Philippine Stock Exchange. Source: Reuters

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.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.