Axelum eyes nationwide expansion

MANILA, Philippines — Axelum Resources Corp.is expanding its market presence and enhance its business operations in three to five years.

The coconut product manufacturer plans to expand its distribution network to penetrate key cities in Visayas and Mindanao such as the Panay island, Cebu, Davao, General Santos and Zamboanga.

Axelum said it aims to solidify its presence in existing markets and expand its foothold in other potential markets through the expansion of its distribution network.

Proceeds from the planned initial public offering (IPO) would be used for the expansion, officials said.

“We also plan to increase our market share by growing our customer base for private label brands and by introducing our house brands to additional retailers in order to gain greater scale and improve profit margins,” Axelum president Henry Raperoga.

Outside the Philippines, Axelum plans to widen its presence in North America, particularly in the West Coast and Canada as well as gain market share in South America.

“Through our subsidiary, RV Foods Corp. (RVF), we aim to gain market share in the South American market and at the same time penetrate the underserved retailers in the US market,” Raperoga said.

The company is also looking at potential expansion opportunities in Europe, the Middle East and other major Asian countries.

At present, the products manufactured by Axelum are exported and distributed to the United States, Canada, Australia and Europe. It is one of the leading manufacturers and exporters of coconut water and is one of the major suppliers of Vita Coco, the global leader in coconut water.

In all, Axelum plans to sell up to 700 million primary shares and 100 million secondary shares at a price of P5 per share for a stock market debut of P4 billion.

The offer period for the share sale started last Sept. 24 and will end on Sept. 30, with the target listing date on Oct. 7.

Its market capitalization is estimated to reach P20 billion upon listing.

Axelum tapped First Metro Investment Corp., as the issue manager, bookrunner and joint lead underwriter of the IPO, while BPI Capital is the joint lead underwriter.