Axelum lowers maximum offer price for IPO

Integrated coconut product manufacturer and exporter Axelum Resources Corporation on Monday said it has lowered the maximum offer price for its initial public offering (IPO), in efforts to “optimize investors’ interest.”

The updated maximum offer price for its maiden share sale is P5.71 per share, from P6.81 as the company announced earlier.

“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 Axelum president Henry Raperoga.

Axelum is selling up to 700 million primary shares and 430 million secondary shares, with the final offer price to be announced on September 30.

The offer period runs from September 24 to September 30, with the listing date targeted for October 7 under the trading symbol AXLM.

The planned IPO has been approved by both the Philippine Stock Exchange and the Securities and Exchange Commission.

A fully integrated manufacturer of coconut products and international food and beverage products, Axelum has its main production facility in Medina, Misamis Oriental. It also owns two manufacturing and distribution facilities in the United States and Australia.

The proceeds from the IPO will be used for strategic acquisitions (42%), and the expansion of the company’s domestic and international distribution network (12%).

It will spend 11% on improvement and expansion of manufacturing facilities, 18% on loan payments and reduction of payables, and 17% on other capital expenditure requirements.

The company tapped First Metro Investment Corp. and BPI Capital Corp. as joint lead underwriters. —VDS, GMA News