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SEC approves North Star IPO

The Securities and Exchange Commission (SEC) announced that it has approved the initial public offering (IPO) of North Star Meat Merchants, Inc. valued at up to P4.5 billion.

In a Tuesday opinion, the commission said it had decided to make effective North Star’s registration statement, which includes 1.8 billion common shares, subject to the company’s satisfaction of certain remaining requirements.

The meat retailer will offer up to 360 million common shares to the public at a price of up to P10 per share.

The offering also includes 32 million shares to be offered by selling shareholder Golden MJTF Holdings, Inc. and an over-allotment option of 58 million common shares, also priced at up to P10.

“Net proceeds from the offering of the Primary Shares are expected to be approximately P3.462 billion, which the Company will use to make investments to expand its cold chain infrastructure, increase working capital and expand product lines,” the SEC said.

Assuming the over-allotment option is exercised in full, Golden MJTF Holdings may net up to P864.45 million. North Star Meat Merchants will not receive the proceeds from the sale of the selling shareholder’s shares.

The offering runs from May 30th to June 3rd, with the listing on the PSE scheduled for June 10th, according to the most recent schedule filed with the SEC.

The shares are listed and traded on the main board of the Philippine Stock Exchange (PSE).

The company has BDO Capital and Investment Corp. won as sole underwriter, joining China Bank Capital Corp. as Joint Lead Underwriter and Joint Bookrunner. PNB Capital Investment Corp. and SB Capital Corp. will also act as co-lead underwriters.

North Star is a meat retailer and supplier operating 360 meat franchises nationwide with 8.09 million kilograms of cold storage capacity and the capacity to ship up to 120,000 kilograms of meat per day. — Luisa Maria Jacinta C. Jocson

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