Agri firm Calata Corp plans P540-M IPO

MANILA, Philippines - Calata Corp., a leading agricultural firm based in Plaridel, Bulacan, filed yesterday an application for an initial public offering (IPO) worth as much as P540.15 million.

Calata is the largest combined distributor of agro-chemicals, feeds, fertilizers, veterinary medicines and other agricultural products coming from business partners such as San Miguel Corp. for B-Meg Feeds and veterinary products, Syngenta, Bayer, Jardine, Dupont, Sinochem, for agro-chemicals, East West Seeds, Monsanto, Planters Products for its agricultural seeds and Swire, Viking for fertilizers.

Based on its filing with the Securities and Exchange Commission, Calata will sell up to 72.024 million common shares through a primary and secondary offering at a maximum price of P7.40 each. The offer shares represent 20 percent of the company’s issued and outstanding capital immediately after the IPO.

UniCapital Inc. was tapped as issue manager and underwriter for the offering while Absolute Traders & Consulting Services Inc. was named as financial advisor.

Net proceeds from the offering will be used primarily to put up retail outlets nationwide (P132.89 million) and for general working capital requirements (P109.52 million).

The company is embarking on an aggressive expansion program with the establishment of 100 retail outlets across the archipelago. The move is in line with its strategy to retail agricultural products directly to end-consumers, farmers and other small dealers in the country.

Formerly known as Planters Choice Agro Products Inc., Calata has increased its annual revenues from about P200 million in 2003 to more than P1.8 billion in 2010, equivalent to an 800-percent increase in revenues for the past seven years of operation.