AgriNurture sets follow-on offering of shares in third quarter

MANILA, Philippines - Food exporter AgriNurture Inc. (ANI) is preparing for its planned follow-on equity offering this year to raise between P1.5 billion and P2 billion.

Tony Tiu, chief executive officer of ANI, said in a text message that the follow-on offering will take place in the third quarter this year.

Proceeds from the offering will be used for the expansion of its banana, rice and vegetable plantation as well as expansions of cold storage for shelf life extension, he said.

ANI is mandated to undertake an initial public offering (IPO) a year after its listing by way of introduction on May 25, 2009.     

Tiu said the company is also pursuing its stock rights offering in the second quarter with Multinational Investment Bancorporation (MIB) and Vicsal Investment Inc. handling the issue. He said the amount to be raised from the rights offering has yet to be determined by the board.

Shareholders can buy one share for every one share held as of a record date yet to be determined by the company.

Subscribing shareholders shall also be entitled to free warrants at a ratio of one warrant for every two shares acquired from the rights issue.

ANI currently exports banana, papaya, pineapple and mango to parts of Southeast Asia, Canada, Europe, South Korea and the Middle East. The bulk of its produce is shipped to China.      

The company is now into the planting of rice, corn and high-value vegetables. Since these products are perishable, the company is looking to extend the shelf life by putting up cold storage facilities.