North Star Meat Merchants Inc. has delayed its 4.5 billion pesos initial public offering (IPO) initially scheduled for this month, citing market volatility caused by increased consumer prices.
The fresh meat supplier made the decision after consulting with its joint lead underwriters and joint bookrunners, BDO Capital & Investment Corp. and China Bank Capital Corp.
“Although the company and its plans have been well received, the company has been forced to postpone the IPO due to heightened market volatility amid inflation concerns,” it said in a statement to the stock exchange on Tuesday.
The stalled IPO consisted of up to 392 million common shares with an over-allotment option of up to 58 million secondary common shares at an offer price of P10.
The Company filed its registration statement with the Securities and Exchange Commission on March 21 and received its approval on May 23. On May 26, the Philippine Stock Exchange approved its listing application.
Adjusted timetable
“The company intends to continue with its expansion plans, albeit with an adjusted schedule and funding source. The company remains confident in its growth prospects and hopes to tap the capital markets in the future,” said North Star.
According to the prospectus, the proceeds from the capital raising were earmarked for expanding cold chain infrastructure and increasing working capital, among other things.
The company has three cold chain facilities with a combined capacity of approximately 8.1 million kilograms, serving 360 meat franchises and over 1,250 stores and outlets across the country.
In 2021, North Star increased its total sales by more than 50 percent to 9.28 billion pesos; Profits rose 155.56 percent year-on-year to 610.5 million pesos.
– Tyrone Jasper C. Piad INQ
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