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ORCA Cold Chain Solutions files for IPO

Ramon Royandoyan - Philstar.com
ORCA Cold Chain Solutions files for IPO
ORCA's main selling point is its development of a cold storage facility equipped with a fully-automated storage and retrieval system and an in-house warehouse management system that reduces inefficiencies, pilferage, and cross-contamination.
Photo from ORCA's website

MANILA, Philippines (Updated, 3:17 p.m.) — Cold storage company ORCA Cold Chain Solutions filed for an initial public offering on Thursday in a bid to raise cash for land acquisitions to accommodate new facilities.

Filing documents released Thursday showed the company plans to sell 1.04 billion primary shares and 444.8 million secondary shares at a price of P0.88 apiece.

If there will be strong investor interest in the offer, Orca plans to sell 222 million more shares to meet the extra demand.

Including the overallotment option, the company is poised to raise P1.48 billion from its maiden share sale. Of that amount, net proceeds from the sale of primary shares amounting to P841.1 million will be used to buy more land for Orca’s new cold storage facilities, as well as for budgetary support to the company.

Orca’s IPO would come at a turbulent time for the local stock market as inflation and recession fears dominate the trading floors around the globe. Meat vendor North Star Meat Merchants shelved its plan to go public last month due to “increased market volatility amidst inflationary concerns.”

READ: North Star shelves IPO plans due to 'market volatility'

ORCA's main selling point is its development of a cold storage facility equipped with a fully-automated storage and retrieval system and an in-house warehouse management system that reduces inefficiencies, pilferage, and cross-contamination.

The prospectus noted the company is one of the few in the Philippines that utilizes automation on this scale. Likewise, the firm highlighted the available capacity to store a million Covid19 vaccines since ORCA was tapped by local governments for their vaccination efforts.

The offer period will start on October 20 until October 26. Orca will appear on the Small, Medium, and Emerging Board of the local bourse once it lists on November 3. 

 

Editor's note: A previous version of this article stated that North Star employs "similar technologies that Orca uses". This is incorrect and that part of the article has been removed. We apologize for the error.

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