SEC approves Villar’s AllHome, and Axelum’s IPOs

The Securities and Exchange Commission (SEC) has given the initial public offering (IPO) of Axelum Resources Corp. and Villar’s AllHome  Corp. the green light.

The Commission En Banc gave the approval on Monday.

The maiden share sale of AllHome and Axelum was valued at a cumulative P16.76 billion.

The SEC said AllHome’s IPO is worth P12 billion, and Axelum’s is P4.767 billion. AllHome is owned by the country’s richest man, former Senator Manuel Villar Jr.

“Axelum Resources and AllHome intend to list their common shares on the Philippine Stock Exchange (PSE), following the stock market listing of Kepwealth Property Phils. Inc. on August 19,” the SEC said.

Kepwealth debuted on the Philippine Stock Exchange on Monday, the first company to go public this year, generating P384.77 million from 67.032 million shares at an offer price of P5.74 per share.

Home improvement retailer AllHome is offering 750 million new common shares and 375 million existing common shares presently held by AllValue Holdings Corp.

At a maximum offer price of P16 per share, the company expects to net P11.4606 billion from the IPO.

A large chunk of the proceeds or P6.20 billion has been earmarked for capital expenditures and initial working capital, P4.64 billion for debt repayment, and P601.9 million for general corporate purposes.

Incorporated in 2013, AllHome has since opened 27 stores in 22 cities and municipalities across the country.

AllHome has tapped UBS AG-Singapore as sole global coordinator and joint bookrunner, CLSA Limited and Credit Suisse (Singapore) Limited as joint bookrunners, and PNB Capital and Investment Corporation and China Bank Capital Corporation as domestic underwriters.

Axelum

According to the SEC, Axelum plans to offer 400 million treasury shares, and 300 million common shares, priced at a maximum of P6.81 per share.

Axelum, a fully integrated manufacturer of coconut products and international food and beverage products, expects to net P4.408 billion from the primary offer.

The company 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 retirement of loans and reduction of payables, and 17% on other capital expenditure requirements.

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