Axelum shares down in PSE debut

MANILA, Philippines — Axelum Resources Corp., producer and exporter of coconut products, ended its first day of trading lower than its initial public offering price yesterday.

Its share price closed at P4.69 per share, down 6.2 percent from its IPO price of P5 per share.

The company is the first to list on the main board of the Philippine Stock Exchange since March 2018.

Axelum chairman Romeo Chan said despite global concerns that continue to weigh down the local equities market, the IPO attracted a broad spectrum of investors from retail to pension and retirement funds, insurance companies, trust funds, banks and a number of private corporations, as well as foreign funds.

“It’s very encouraging to see that investors remain optimistic and gave their vote of confidence in Axelum,” Chan said.

“We have already put up the necessary infrastructure to grow our business and with this IPO, we are confident that we are in a better position to pursue our expansion plans and capture the increasing demand for high value coconut products,” he said.

The company has just closed a new order for organic coconut milk powder to be used as ingredient in a skin care supplement. The initial order for export is for 170 metric tons, said Axelum president Henry Raperoga.

“This contract is for another new application from the versatile coconut. It is among the high-margin products that we are pursuing. We can actually command a premium price for this product,” he said.

Axelum tapped  First Metro Investment Corp., the investment banking arm of the Metrobank Group, as the sole issue manager, bookrunner and together with BPI Capital Corp., as joint lead underwriter of the IPO.

First Metro executive vice president and head of investment banking Daniel Camacho said the positive response of investors is anchored on their belief and confidence in Axelum.