Axelum IPO | Marvin Germo

Axelum IPO

By: Marvin Germo | September 10, 2019

Axelum IPO Initial Report

Hi guys! Here’s a quick update on the latest IPO!  The main goal of this is to give you the right information so you can make amazing decisions on your investments as I really believe the best investments are the ones you spent most of your time studying. All of the information below is just based on the IPO prospectus that the company disclosed.

Please do send me your questions if you  have any and I’ll be creating 2 or 3 more videos on it over the next few weeks to talk more about the company as well.

Before you continue to this article please make sure you have watched this video I created on IPOs.

Catch me in my live training events! (quick plug)

The heart of why I do these seminars is I want to build a generation of Filipinos with the right foundation in stock investing.  I want to bring smart investing to every Filipino around the world! If you would like to know more about how you could time the market check out the trainings below.

Stock Smarts Manila – September 14, 15, 21, 22,&28, 2019
Stock Smarts Qatar —  October 3 – 6, 2019
Stock Smarts Cebu – October 26-27,2019
Stock Smarts Taiwan – November 2, 2019
ICON Davao – November 30, 2019

Background

Axelum Resources Corp. is a fully-integrated manufacturer of high quality coconut products for domestic and international food & beverage companies, confectioneries, bakeries, private label supermarkets and grocery store chains, food service industries, coconut coffee creamer manufacturers, cosmetics and diet prepared food market. The Company uses all the parts of the coconut in its production resulting to a full-line of coconut products including coconut water, desiccated coconuts, coconut milk powder, coconut milk/cream, reduced fat coconut, sweetened coconut, coconut oil, and other coconut products.

The IPO price will be at 6.81 Pesos and the float will be 28.25% after all shares are sold.

The total money raised in the IPO would be 7.7 Billion Pesos.

IPO Proceeds

The total shares to be sold is about 1.13 Million common shares. 700,000 primary shares and 400,000 secondary shares.

Strategic Acquisitions – 1.85 Billion Pesos (26%)
Expansion of Domestic and International distribution network – 530 Million Pesos (7%)
New Manufacturing facilities – 470 Million Pesos (7%)
Retirement of Loans – 800 Million Pesos (11%)
Other Capital expenditures – 758 Million Pesos (17%)
Secondary Shares – 2.7 Billion Pesos (38%)

Purpose of IPO

The Company intends to use the net proceeds it receives from the Primary Offer for the funding of strategic acquisitions, expanding its domestic and international distribution networks, installation of new manufacturing facilities for new products and improvement and expansion of manufacturing facilities, retirement of loan.

Dividend Policy

The Company has adopted a dividend policy of distributing, either as cash or stock dividends, 15% of the reported net income of the immediately preceding fiscal year.

Who will the shares be sold to:

791 Million Shares (70%) – Institutional Buyers
226 Million Shares (20%) – PSE Trading Participants
113 Million Shares (10%) – Local Small Investors

Net Income:

2015 – 108 Million Pesos
2016 – 474 Million Pesos
2017 – 530 Million Pesos
2018 – 365 Million Pesos

Competitive Strengths:

1. Economies of scale and diversified product line catering to different markets

2. International network of customers The Company has a wide and deep portfolio of customers worldwide.

The Company’s products are sold to domestic and international food & beverage companies, confectioneries, bakeries, private label supermarkets and grocery store chain, food service industry, coconut coffee creamer manufacturers, cosmetics and diet prepared food market. Notable customers include Vita Coco, The Hershey Co., ConAgra Foods, Kellogg’s, Quaker, Nestle, Russell Stover, Unilever, Kroger, Mondelez International, Ferrero, Kraft Foods, General Mills, Campbell’s, Mars, Cadbury Schweppes, and Calbee, among others.

3. Well-established global distribution network

4. Highly experienced and dedicated management team

5. Industry leader in the coconut industry

I hope this helps you decide!

I’m excited to share my 5th book overall and the 4th book in the Stock Smarts series, Stock Smarts: Breaking the Resistance – How to time your traders perfectly. The heart of this book is to teach you strategic ways on how to come in and buy and sell stocks in a way where you come as the market is headed up and come out as the market is headed down. The book is now out and exclusive via Marvin Germo Book Orders.
For more details and to order my other books: Marvin Germo Book Orders
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