SEC okays P540-M IPO of Calata

MANILA, Philippines - The Securities and Exchange Commission has cleared the planned initial public offering (IPO) of Bulacan-based agricultural firm Calata Corp., which is estimated to raise up to P540.15 million

Calata is selling up to 72.024 million shares through a primary and secondary offering at P7.50 each. The offer shares represent 20 percent of the company’s issued and outstanding capital immediately after the IPO.

The offering is slated to run from April 2 to 4, while the listing date is scheduled on April 19.

The shares will be listed on the second board of the Philippine Stock Exchange.

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

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

Calata said net proceeds from the IPO will be used primarily to put up retail outlets nationwide and for general working capital requirements.

Calata 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 over seven years.