Century Pacific Food Inc. debuted in the local stock market last May 6, listing under the trading symbol CNPF. Investors cheered the entry of a Philippine growth and consumer company, with CNPF shares rising to Php15.50 on opening belland closing at Php15.20 for its first day of trading.
“I’m happy to see CNPF trade at these levels. Investors are hungry for good stocks and this food company is giving nourishment,” said veteran fund manager Gus Cosio, president of First Metro Asset Management Inc.
The second company to tap the equity market this year via an Initial Public Offering (IPO), CNPF raised Php3.16 billion in fresh capital from the sale of 230 million shares at Php13.75 apiece. 20 percent of the new common shares was distributed through brokers of the Philippine Stock Exchange, while 10 percent was directly distributed to local small investors. The remaining 70 percent was allocated to qualified institutional buyers and the general public through Joint Lead Underwriters BDO Capital and Investment Corporation, First Metro Investment Corporation, and BPI Capital Corporation. The IPO was oversubscribed by 3.5 times the base offering.
Proceeds raised will be used to support capital expenditures, boost working capital, pay short-term obligations, and finance possible acquisitions.
The Company expects to improve net margins through the completion of a new tin can facility by the end of this year. The tin can factory in General Santos is meant to reduce packaging costs and prepare for further growth. ask magazine In its offering circular, the Company also noted its strong track record of expanding product lines through successful acquisitions of undervalued local brands. CNPF remains open to similar opportunities, including entering into new segments like the local distribution of branded coconut water.
As a result of the IPO, CNPF’s main stockholder structure will be as follows: 89.7 percent parent company Century Canning Corporation and 10.3 percent the public.
CNPF was the result of a corporate reorganization implemented to rationalize as well as maximize the Century Group of Companies’ organizational strengths, dividing business operations into four main business segments – canned and processed fish, canned meat, dairy and mixes, and tuna export.
Source: Philippine Daily Inquirer, Philippine Star