Cold storage firm Orca Cold Chain Solutions Inc. is looking to raise P1.5 billion in funding trough an initial public offering (IPO).
The company intends to sell to the public a combined 1.7 billion shares divided into an initial 1.7 billion shares of primary and secondary shares and another 222 million shares to cover the oversubscription option, at an offer price of up to P0.88 per share.
The company will generate P841 million to be used for land acquisition, expansion of existing facilities to accommodate additional value-added services, development of new cold storage facilities.
The company said it will spend P150 million for the expansion of its Taguig facility, specifically for the blast freezing section and processing area and for the purchase new equipment for its value added services.
It will spend P115.2 million to develop a greenfield cold storage facility in Cagayan De Oro, which will have a 8,450 pallet positions capacity. This will be Orca’s first facility in Mindanao.
Another P167.7 million will be used for the development of another greenfield cold storage facility in Cebu, which will have a capacity of 10,000 pallet positions, and will be its first facility in the Visayas.
Orca will also spend P108.2 million for new business initiatives geared to pharmaceutical clients. This includes acquiring equipment for its Caloocan facility as well as future expansion sites.
The company will also need to expand the on-site teams and to upskill existing workers.
“This should allow Orca to cater to other pharmaceutical products other than the COVID-19 vaccine in additional locations,” the company said.
Investment and Capital Corp. of the Philippines serves as sole issue manager and lead underwriter.
ORCA developed the first cold storage facility equipped with a fully automated storage and retrieval system in the country.
