RFM revives P1-B follow-on offering

MANILA, Philippines - Listed food and beverage firm RFM Corp. is reviving its plan for an equity offering that will allow the company to raise more than P1 billion.

Fresh funds from the share sale will prepare RFM for acquisition and expansion opportunities, the company said.

In a disclosure, RFM said its board of directors agreed to proceed with the fund raising approved way back in 2011.

“The resolution was passed due to the renewed interest and confidence of investors in the Philippine equities market and in the growth plans of the corporation,” RFM said.

The company was also encouraged by the interest of several investment firms to invest in RFM “as it pursues possible acquisition and expansion opportunities and capital expenditures,” it added.

In January 2011, shareholders approved the follow-on offering of common shares to raise P800 million to P1 billion. However, concerns over inflation and higher costs of raw materials dampened investor sentiment, prompting RFM to shelve its fundraising plan.

“I think it will be higher [than the previous target of P1 billion] because the share price is better,” Felicisimo M. Nacino, Jr., executive vice-president and chief operating officer of RFM, said in a phone interview.

He said the top-up offering can be done in the next two months.

Under the firm’s fund raising scheme, majority shareholders will sell 450 million common shares to new investors. The selling stockholders will then subscribe to 450 million new shares to be issued by RFM.

“RFM is gearing up for possible acquisition opportunities or for expansion of existing brands,” Nacino said.