MANILA, Philippines – Canned tuna maker Century Pacific Food Inc. set the final offer price of its initial public offering (IPO) at P13.75 per share, according to Eduardo Francisco, president of BDO Capital & Investment Corporation.
BDO Capital is one of the underwriters hired by Century Pacific for the IPO.
The P13.75 offer price is close to the upper end of the P12.50-P14.50 price range earlier set by the company.
At P13.75 per share, Century Pacific will raise P3.157 billion in proceeds from the sale of 229.654 million shares.
Aside from BDO Capital, Century Pacific also tapped BPI Capital Corporation and First Metro Investment Corporation to handle its maiden offer.
Offer period was set on April 23 to April 29. Listing date will be on or before May 6.
Out of the expected proceeds from the offering, P1.29 billion will be used for short-term debt payments, over P1 billion for working capital and potential acquisition, and the remaining amount for capital expenditures that will increase the company’s production capacity.
Century Pacific is building a tin can factory in General Santos City to supply a portion of its manufacturing needs.
The new facility is expected to have an output capacity of at least two million tin cans per year or between 25% and 30% of the company’s requirements. The plant will be operational by the end of 2014.
Century Pacific is a leading branded food company primarily engaged in the development, processing marketing and distribution of processed fish meat in the Philippines. It also exports its products to the US, Germany, United Kingdom and Japan.
The company is also engaged in the production of dairy products.
Among its top-selling brands are 555 and Century Tuna for canned tuna, Argentina and Swift for canned meat products, and Angel and Birch Tree for canned and powdered milk. – Rappler.com
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