COCONUT manufacturer Axelum Resources Corp. announced on Monday that it had brought down the maximum offer price for its initial public offering (IPO) to P5.72 per share from P6.81 previously to boost market appetite.
“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,” Axelum president Henry Raperoga said in an e-mail message.
The IPO-bound firm said that the final price will be announced on September 20.
With the new maximum offer price, Axelum can possibly raise as much as P6.46 billion, down from P7.7 billion before.
The coconut product maker intends to sell up to 700 million primary shares and up to 430 million secondary shares.
Offer period will be on September 24-30, while the target listing date is on October 7. Proceeds of the transaction will go to the company’s strategic acquisitions, expansion of distribution channels and upgrading of facilities, among others.
The company also set aside for loans, payables and other capital expenditure requirements.
Philstocks Financial, Inc. research associate Japhet Tantiangco said that Axelum’s move to cut the maximum offer price was strategic given the current market conditions.
“Our local market is still facing turbulent times causing a dent on investors’ sentiment. By lowering the maximum price and improving its attractiveness, Axelum could boost investors’ appetite toward its shares amid ongoing uncertainties,” he added.
First Metro Investment Corp. was tapped to serve as the issue manager, bookrunner and joint lead underwriter — along with BPI Capital — of the transaction.
Axelum is among the three firms that was given the green light by the Philippine Stock Exchange to proceed with IPO after securing regulatory approval in August.