MANILA, Philippines - After the successful listing of its shares in Australia last January, fruit exporter AgriNurture Inc. is now set on listing at the Philippine Stock Exchange (PSE) by way of introduction on May 13.
During the company’s investors’ briefing yesterday, AgriNurture president and chief executive officer Antonio L. Tiu said they are meeting with the PSE to thresh out the details of their planned introductory listing, which would not involve an initial public offering (IPO).
AgriNurture recently obtained the Securities and Exchange Commission’s nod for the listing of 178 million shares. The approval was subject to the condition that the company would undertake a public offering one year after its listing.
Under the plan, AgriNurture will offer 101.46 million shares through a follow-on offering. As a sweetener, the company will offer around 20 million warrants to the public.
A warrant is an instrument issued by a corporation giving to the holder the right to purchase the stock of a company at a stated price either prior to a stipulated date or at any future time.
Proceeds from the listing will be used to fund working capital requirements which include the acquisition of new canning equipment, laboratory equipment, drying and freezing equipment and cold storage facilities, and additional investment in farm machinery and equipment.
Tiu said the company does not see the immediate need to raise cash from the equities market, pointing out it has stand-by lines of credit.
AgriNurture exports carabao mangoes, cavendish bananas, Hawaiian sweet pineapples, tamarinds and papayas. It currently supplies fruits and vegetables to 27 out of the existing 31 supermarket branches of SM.
Organized in February 1997, AgriNurture is the country’s top exporter of the much-coveted Philippine Carabao mangoes in terms of volume and market coverage.
Tiu said the company is focusing on Asia, particularly the Greater China region.
On the homefront, AgriNurture is planning to expand in Central Luzon and Northern Mindanao to further bolster its presence and boost profitability.
Formerly known as Mabuhay 2000 Enterprises, AgriNurture was the first to bring into the Philippine market the Mega-Sun brand of grain dryers.
AgriNurture, through subsidiary First Class Agriculture, serves at least 100 tons of high-grade vegetables through its brand Fresh Choice Always to Metro Manila residents through the SM Supermarket and SM Hypermart chains.
Another unit, M2000 Imex, is also engaged in the processing of branded and toll-manufactured canned fruit beverages and products such as mango nectar, coco juice, coco cream and coco milk.