September 20, 2019 / 7:24 AM / in 5 months

Philippine coconut products maker prices $109 mln IPO

MANILA, Sept 20 (Reuters) - Philippines’ Axelum Resources Corp on Friday priced its initial public offering (IPO) looking to raise 5.65 billion pesos ($109 million) in the country’s second IPO this year.

It will sell shares at 5 pesos ($0.10) each, a 12% discount to its maximum guidance of 5.72 pesos, the coconut products maker said in a notice to the stock exchange.

The company will sell up to 1.13 billion shares and use the proceeds to help fund acquisitions, expand domestic and international distribution networks, and pay debts.

“We feel it is the perfect balance between what Axelum is worth and the need to provide an upside for the Filipino investing public,” Chairman Romeo Chan told Reuters.

Axelum manufactures products including milk powder, cream and oil from coconuts sourced in the southern Philippines. Its products are exported to 23 countries.

Axelum hired First Metro Investment Corp and BPI Capital for the IPO. Axelum’s shares will start trading on Oct. 7.

The Philippines’ broader stock index is among Asia’s top performers this year but has been trading sideways in the past month, weighed down by the Sino-U.S. trade war.

($1 = 52.04 Philippine pesos)

Reporting by Neil Jerome Morales; editing by Jason Neely

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