The Securities and Exchange Commission approved the P4.5-billion initial public offering of North Star Meat Merchants Inc., a leading frozen and fresh meat supplier in the country.
The SEC cleared North Star’s public offering of up to 360 million common shares at up to P10 per share.
It said the offering would also include 32 million shares to be sold by shareholder Golden MJTF Holdings Inc., plus an over-allotment option for another 58 million common shares also priced at up to P10 each.
The shares will be listed and traded on the main board of the Philippine Stock Exchange.
Net proceeds from the offering of the primary shares will use for capital expenditures to expand the company’s cold chain facility in Bulacan and open a cold storage plant in Cebu, which will increase the company’s maximum storage capacity to 8 million kilograms from 2.1 million kg.
The company is also looking to expand its financial position to keep up with the growth of key retail partners SM Markets and Waltermart Group and prepare for future potential retail partners.
About 90 percent of the company’s business are with SM supermarkets and affiliate stores including Alfamart and Savemore.
North Star Meat Merchants is a meat vendor and supplier that operates 360 meat concessions nationwide. It can deliver up to 120,000 kg. of meat daily.
North Star recorded sales of P9.28 billion in 2021 and registered a compounded annual growth rate of 39.7 percent since 2019.
The IPO will run from May 30 to June 3, with listing on the PSE scheduled on June 10, according to the latest timetable submitted to the SEC.
Jenniffer B. Austria
The company tapped BDO Capital and Investment Corp. as the sole issue manager, which will be joined by China Bank Capital Corp. as joint lead underwriters and joint bookrunners. PNB Capital Investment Corp. and SB Capital Corp. will also serve as co-lead underwriters.