Food manufacturer Axelum Resources Corp. expects to grow revenues as much as 20 percent in the next two years as it expands its manufacturing capacity on the back of a scheduled initial public offering (IPO).
Axelum president Henry Raperoga said the business booked about P5.8 billion in revenues in 2018, propelled by the growing thirst for coconut products, particularly outside of the Philippines.
The company forecasts revenues growing in the “high teens” as it pours some of the proceeds from its maiden offering to expanding its manufacturing facility to accommodate the growing demand for non-traditional coconut products, such as coconut water, coconut milk powder and coconut cream.
Reperoga said up to 35 percent of Axelum’s revenue share in 2018 were from desiccated coconut, while another top product, coconut water, accounted for about 20 to 30 percent. Exports comprised as much as 90 percent of the year’s sales, with the United States emerging as top market.
The coconut export manufacturer has secured regulatory approval for its planned P4.77 billion IPO, where it will offer 1.13 billion shares at a maximum price of P6.81 apiece. The company’s IPO is scheduled on 24 to 30 September, while listing is slated on 7 October.
“The timing is perfect. We should seize the moment and go public,” Axelum chairman Romeo Chan said.
“Over the past 10 years, exports by the Philippine coconut industry have grown by approximately 10 percent annually. Traditional coconut products, such as copra and crude coconut oil grew by around 11 percent annually. Non-traditional products, on the other hand, grew by 25 percent annually,” Chan added.
The company is looking at P4.408 billion in net proceeds from the primary offer should the final price remain at P6.81 per share. The capital will be used for strategic acquisitions, distribution network expansion, new manufacturing facilities, retirement of loans and reduction of payabales and other capital expenditure needs.
Axelum’s 22-hectare main production facility, situated in Medina, Misamis Oriental, processes 600,000 to 700,000 pieces of coconut per day. The company also owns two manufacturing and distribution facilities in the US and Australia.