Listing-bound Calata Corp eyes 100 new outlets/yr

MANILA, Philippines- Bulacan-based agricultural firm Calata Corp. is aiming to open 100 retail outlets annually to spur further growth and shore up its revenue base.

In a briefing yesterday, Calata chairman and president Joseph Calata said the company is looking to open 300 retail stores in three years to widen its reach, establish a more stable customer base, and boost profit margins.

Calata is the country’s largest combined distributor of agro-chemicals, fertilizers, seeds, feeds and veterinary medicines from manufacturers and partners under leading brands such as B-Meg, Syngenta, Bayer, Jardine, Dupont Monsanto, Swire, Yara, Viking and East West seeds.

Calata currently has 115 outlets and intends to expand its coverage to other remote areas in Northern Luzon.

Zandro Zulueta, chief executive officer of Absolute Traders, said Calata’s goal is to establish a chain of outlets in Luzon in a convenience store approach that ups the level of service and experience for buyers.

Absolute Traders is Calata’s financial advisor while Unicapital is the underwriter for its initial public offering (IPO).

From only P508 million in 2004, Calata has substantially grown its revenues to P2 billion last year. It has consistently landed in the top 1000 largest corporations in the Philippines.

To fund its expansion, Calata is hoping to raise up to P270 million through an IPO of its shares.

The company is selling up to 36.012 primary shares through a primary offering at a maximum price of P7.50 each share.

The offer shares represent 10 percent of the company’s issued and outstanding capital immediately after the IPO.

Pricing will be finalized today (May 4) while the offer period will run from May 10 to 16.

Calata will start trading on the second board of the stock exchange by May 23.

 Net proceeds from the IPO will be used primarily to put up retail outlets nationwide (P132.89 million) and for general working capital requirements (P109.52 million).