MANILA, Philippines - Listed food exporter AgriNurture Inc. is pursuing its planned follow-on offering of shares in the fourth quarter this year to raise up to P1.5 billion, according to a top company official.
AgriNurture chief executive officer Tony Tiu said proceeds from the offering will be used to fund the firm’s expansion program which includes facilities for farming, cold storage and wet market operations.
In July, the company announced it was planning to raise around P500 million through a stock rights issue to finance acquisitions. Shareholders can buy one share for every one share held as of a record date yet to be determined by the company for P2.50 each share.
Subscribing shareholders shall also be entitled to free warrants at a ratio of one warrant for every two shares acquired from the rights issue. The warrants are of European call option, exercisable after three years at a strike price of P10 per share.
Directors, officers and stockholders owning more than 10 percent of the outstanding capital stock of AgriNurture shall subject the rights shares to a lockup of 360 days from the date of issuance of the corresponding stock certificates.
AgriNurture currently exports banana, papaya, pineapple and mango to parts of Southeast Asia, Canada, Europe, South Korea and the Middle East. The bulk of its produce is shipped to China.
The company is mandated to undertake an initial public offering (IPO) a year after its listing by way of introduction on May 25, 2009.
AgriNurture is now into the planting of rice, corn and high-value vegetables. Since these products are perishable, the company is looking to extend the shelf life by putting up cold storage facilities.