Co’s The Keepers raising P7.5 billion from follow-on offer

MANILA, Philippines — Retail tycoon Lucio Co is going full blast with his liquor business as it seeks to boost its war chest for expansion.

Co’s listed The Keepers Holdings Inc., (formerly Da Vinci Capital Holdings Inc.), has filed a registration statement for a P7.5 billion follow-on offering after getting the approval of its board of directors and stockholders.

Based on the preliminary prospectus filed with the Securities and Exchange Commission, The Keepers plans to issue up to three billion common shares at a price of P2 to P2.50 per share, to raise funds for the expansion of the liquor, wine and specialty beverage distribution operations.

“We are excited by the opportunity to bring our company to the investing public,” said The Keepers president Jose Paulino Santamarina.

“This is like an IPO because we are actually introducing a new business, one that is rife with huge potential. Keepers is poised to become the only pure play, imported spirits distribution listed company in the Philippines,” he said.

Proceeds from the public offering will be used to fund the company’s expansion, which Santamarina described as a ‘multi-path expansion through horizontal and vertical integration, alternative distribution channels and new geographic territories’ particularly into the high-growth alcoholic beverage market.

The company tapped China Bank Capital Corp., PNB Capital and Investment Corp. and SB Capital Investment Corp. as the joint issue managers, joint lead underwriters and joint bookrunners for the “re-IPO.”

The Keepers Holdings Inc. consolidated the liquor, wine and specialty beverage distribution businesses of Co.  It owns and operates three companies – Montosco Inc., Meritus Prime Distributions Inc. and Premier Wine and Spirits Inc.

The group achieved record consolidated net sales from 2018 to 2019, jumping from P8.58 billion to P10.72 billion or a growth of 25 percent.