North Star Meat Merchants IPO approved by PSE
North Star Meat Merchants [NSTAR 10.00 pre-IPO] [link] had its June 24 IPO approved by the PSE. The company, which is a meat vendor and supplier for SM Group’s vast network of grocery stores, will set its final pricing for the IPO offer on June 8, conduct the offer from June 13 through June 17, and then list on June 24.
While the dates may have changed slightly from the preliminary prospectus we saw when NSTAR originally applied to the SEC, nothing else about the guts of the deal appears to have changed: NSTAR is still looking to raise P4.5 billion through the sale of 360 million primary shares, 32 million secondary shares, and an additional 58 million secondary shares that will be sold as an over-allotment option to finance the stabilization fund.
As per NSTAR’s prospectus, NSTAR’s sales grew at a compound annual growth rate (CAGR) of 39.7% from 2019 to 2021, and its net income grew at a CAGR of 131.9% during that same period.
“CAGR” is used to express the average year-on-year growth, so in the case of NSTAR’s net income, it averaged net income growth of 131.9% per year in that three-year span. (Here’s an Investopedia article on CAGR, it’s a very useful metric!)
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It’s “go time” now that the IPO is officially on the PSE’s schedule.
Getting there is no easy feat, and I knew in my heart of hearts that NSTAR would probably get pushed off of its preliminary prospectus dates because they overlapped so much with VistaREIT’s IPO.
Regardless, NSTAR has its days on the calendar blocked off, and now its underwriters, BDO Capital and China Bank [CHIB 27.00], will work the phones like crazy with their institutional buyers to see what kind of price Anthony Ng can demand for a 25% chunk of his vast (and growing) meat supply empire.
NSTAR will be the third IPO this month, after Raslag [ASLAG 2.00 pre-IPO] and VistaREIT [VREIT 1.75 pre-IPO], but the first this year in the non-restaurant food ecosystem.
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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.
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