Axelum cuts IPO price

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    Axelum Resources Corp. is reducing the maximum price for its initial public offering (IPO) to P5.72 per share from an earlier P6.81 per share which brings down its potential revenue from the fundraising to P6.46 billion from an earlier estimated P7.7 billion.

    The company said the reduction in the maximum price is seen to “optimize investors’ interest.” The offer’s final price however will only be announced on Sept. 20, 2019.

    Axelum plans to sell up to 700 million primary shares and up to 430 million secondary shares.

    The offer period is September 24-30 and listing with the Philippine Stock Exchange is eyed on Oct. 7, 2019.

    Axelum will carry the trading symbol AXLM.

    “By updating the maximum offer price, we aim to optimize investors’ interest and appetite in our local stock market, include more investors while still maintaining funding for our strategic plans,” said Henry Raperoga, Axelum president.

    The net proceeds from the primary offer will be used to fund the company’s strategic acquisitions, expand its domestic and international distribution networks, install new manufacturing facilities for new products, and improve and expand its existing manufacturing facilities.

    A portion of the proceeds will also be utilized to retire the company’s loans and reduce payables and for other capital expenditure requirements.

    First Metro Investment Corp., the investment banking arm of the Metrobank Group, is the issue manager, bookrunner and joint lead underwriter of the IPO. BPI Capital is also joint lead underwriter.

    Axelum is one of the leading manufacturers and exporters of desiccated coconut, coconut milk powder, coconut milk/cream, reduced fat coconut, sweetened/toasted/roasted desiccated coconut and other coconut products.