Shares of Axelum Resources Corp. dipped 6.2 percent on its listing day yesterday to close at P4.69 from an initial public offer (IPO) price of P5.
Axelum opened at P5.29, hit a high of P5.30 before trading lower for most of the day. Total value of transactions hit P891.72 million.
Despite the listing jitters, the company remained optimistic of its prospects.
Officials yesterday announced it closed a new contract to supply organic coconut milk powder to an international skin care product/supplement manufacturer.
“We are pleased with the result of the IPO and the subscription we received from a number of funds, both domestic and overseas as well as individual investors. It’s very encouraging to see that investors remain optimistic and gave their vote of confidence in Axelum,” said Romeo Chan, Axelum chairman.
“We have already put up the necessary infrastructure to grow our business and with this IPO, we are confident that we are in a better position to pursue our expansion plans and capture the increasing demand for high value coconut products,” Chan added.
The company offered to the public 700 million primary shares and 100 million secondary shares at an offer price of P5 apiece, grossing for the company P4 billion. The IPO reduced the secondary shares component from the original 400 million shares.
IPO underwriter First Metro Investments Corp. (FMIC), said the Axelum IPO, a purely domestic offering, is the first to list on the main board of the PSE since March 2018.
Axelum attracted a “broad” spectrum of investors, from retail to pension and retirement funds, insurance companies, trust funds, banks and a number of private corporations, as well as foreign funds, FMIC said.
Henry Raperoga, Axelum president, said Axelum closed a new order for organic coconut milk powder to be used as ingredient in a skin care product/supplement. The initial order, which is for export, is for 170 metric tons.
“This contract is for another new application from the versatile coconut. This line is among the high-margin products that we are pursuing. We can actually command a premium price for this product,” Raperoga said.
Axelum manufactures coconut-based products and exports coconut water. It is a major exporter of desiccated coconut, coconut milk powder, coconut milk/cream, reduced fat coconut, sweetened/toasted/roasted desiccated coconut, coconut cooking oil, and other coconut products.