^

Business

Lim eyes Figaro Coffee for listing at PSE

- Zinnia B. Dela Peña -
The Figaro Coffee Co. Inc., one of the leading coffee shop chains in the country, is among the list of companies being eyed by the Philippine Stock Exchange (PSE) to sell shares through an initial public offering given its market leadership and strong financial performance.

PSE president Francis Lim said the bourse has invited or has yet to invite the All-Filipino-owned coffee shop chain to list its shares in line with efforts to boost liquidity of the equities market.

Figaro is reportedly the second largest coffee shop chain in the country, grabbing a 30 percent market share. It is in fact always mistaken to be a foreign brand.

Figaro is run by a group of Filipino entrepreneurs headed by Pacita "Chit" Juan who was recognized by Ernst & Young in the United States as the most outstanding small business entrepreneur in 2004 for demonstrating management excellence in a business with assets of less than P100 million.

From its first store in Makati in 1993, Figaro now has 48 stores in Metro Manila and an outlet in Hong Kong. In its pursuit of becoming globally competitive, the company is now setting its sights on putting up shops in Vietnam, Singapore and China.

Figaro was the first to introduce flavored coffee beans in the Philippines.

Aside from Figaro, Lim said leading beverage firm Zesto Corp. has indicated interest to list on the exchange to take advantage of the bullishness of the market which has grown 26 percent last year.

Owned by the family of Chinese businessman Alfredo Yao, Zesto is a leading brand in ready-to-drink fruit juices. It also operates three softdrinks plants for RC Cola. It also sells instant noodles, milk and sauces.

The PSE is targeting 50 companies registered with the Board of Investments to list on the bourse as part of efforts improve the supply side of the market with a more diverse menu of stocks available to the public.

These corporations, according to Lim, have a good track record of profitability and are leading players in their respective industries.

The Omnibus Investment Code of 1987 requires companies that are registered with the BOI to list at least 10 percent of their shareholdings on the stock exchange within 10 years of securing tax and other incentives.

The move is an offshoot of the agreement entered into by the BOI and the PSE for the strict enforcement of the Omnibus Investment Code.

There are at least 1,000 companies registered with the BOI, and if at least 10 percent of them list on the stock exchange it will increase the depth of the country’s equities market.

Among the likely candidates for listing are information technology related companies such as those involved in the fast-growing call center business.

There are about 60 call centers operating in the Philippines, but only one is listed on the bourse.

Last year, the PSE saw only two companies list, namely International Exchange Bank and PetroEnergy Resources Corp. which was listed by way of introduction.

The PSE has just over 230 listed companies, which Lim said is one of the fewest in Asia.

Lim is hopeful the stock exchange’s performance in 2004 and early this year will entice BOI-registered companies to finally list on the bourse.

ALFREDO YAO

BOARD OF INVESTMENTS

COMPANIES

FIGARO COFFEE CO

FRANCIS LIM

HONG KONG

INTERNATIONAL EXCHANGE BANK

LIST

METRO MANILA

OMNIBUS INVESTMENT CODE

PHILIPPINE STOCK EXCHANGE

  • Latest
  • Trending
Latest
Latest
abtest
Are you sure you want to log out?
X
Login

Philstar.com is one of the most vibrant, opinionated, discerning communities of readers on cyberspace. With your meaningful insights, help shape the stories that can shape the country. Sign up now!

Get Updated:

Signup for the News Round now

FORGOT PASSWORD?
SIGN IN
or sign in with