Mega Global Corp targeting an IPO by 2025
The company behind the Mega [MEGA pre-pre-IPO] brand of sardines, tuna, and mackerel (don’t forget Primo sparkling juice!), said at a virtual round-table that MEGA is hoping to make its company “IPO-able, which it defined as “the company is transparent, we have the right people, the right plans and projects”, with a target of conducting an IPO by 2025.
MEGA said that in the short term, it’s looking to maintain its double-digit growth in 2022, and open its new multi-use manufacturing plant in Batangas, which MEGA believes will contribute “20%-30% of Mega Global’s target sales and growth for 2022 and beyond”.
MEGA has the largest fishing fleet and canning operation in the Philippines, with its fishing arm, Mega Fishing Corporation, comprised of 88 fishing vessels and over 880 fishermen, and its canning arm, Ayala Seafoods Corporation, capable of producing up to 2 million cans of sardines per day.
MB BOTTOM-LINE
This IPO is a long way off, and a lot can happen between now and then. Four years is a long time. That said, MEGA is probably looking at companies like Century Pacific Food [CNPF 26.45 2.04%] that are just absolutely crushing it, helped by the demand-hardening tailwind of the COVID pandemic to hit all-time highs.
Can MEGA join the ranks of the PSE? It seems like it has some work to do, as the refreshingly candid self-assessment of the company’s development notes revealed.
It feels like the company realizes that it needs to pivot away from some aspects of its legacy management or processes, perhaps professionalize some key components of the business, and post a few years of consistent revenue and profit growth before trying to hit the market. If they can manage such a change, I look forward to covering the IPO!
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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.
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