Listed Alliance Select Foods International Inc. is delaying its planned listing at the Singapore Stock Exchange (SGX) until early 2014, instead of doing it originally in the second half of this year because of tax issues.
“It could be early next year depending on how fast we can hear back from the BIR [Bureau of Internal Revenues],” Jonathan Dee, Alliance Select president and chief executive officer, told reporters after the company’s annual stockholders meeting on Wednesday.
According to him, the company is currently asking the BIR to relax the rule that requires
Alliance Select to inform the BIR 15 days before selling shares, because share purchase transactions could be unpredictable.
“We’re hoping that we hear from the BIR. If we hear from them in the next quarter, then we can apply it, then it would take three months, then it [the listing]will probably be next year,” Dee said.
For the size of the offering, he said that the company hasn’t identified yet the specific amount, but it is looking to list less than 400 million depository shares representing the company’s common shares.
“The approval of the board is up to 400 million shares but it is going to be less than that. It still depends on the price range, the market movements, or something we can’t tell right now,” he added.
Alliance Select earlier announced that it will be pursuing its plan to list at the SGX in the second half of this year after registering a complete turnaround on its profit in 2012, where the company earned $74,000 versus a net loss of $952,000 in 2011.
Dee said that the company is currently in the process of working on some documents related to its proposed listing on the Catalist Board of SGX.
For this year, Alliance Select is allotting $21 million in capital expenditure to beef up its operation in the Philippines and Indonesia. Of the overall capex, $17 million will be spent for the firm’s Philippine operation, while the remaining $4 million will be allotted for Indonesian operations.
Moreover, Dee said that the company is on track to hitting its 30-percent to 35-percent growth target in its income and sales.
“The key right now for us is to build up the fishing divisions, that’s why the capex is all focused toward that. We are going to work on the integration of the fishing department,” Dee said.
According to him, good volume of raw material as well as the good prices in the market would both be the main drivers for the growth.