NORTH Star Meat Merchants, Inc. announced on Tuesday that it is deferring its planned initial public offering (IPO) amid concerns about market volatility and inflationary pressures.
“While reception to the company and its plans has been positive, the company was constrained to defer the IPO due to increased market volatility amidst inflationary concerns,” the company said in a letter to the Philippine Stock Exchange (PSE). The letter was dated June 6 but made public on June 7.
North Star’s proposed listing would offer up to 392 million common shares, consisting of up to 360 million primary common shares and up to 32 million secondary common shares, with an overallotment option of up to 58 million secondary common shares.
The shares would have an offer price of up to P10 per share, bringing the IPO size to P4.5 billion.
According to the latest PSE advisory, the offer period was planned to run from June 13 to 17, with a tentative listing date on June 24.
The company said the deferral was made in consultation with BDO Capital & Investment Corp. and China Bank Capital Corp., its joint lead underwriters and joint bookrunners.
It also intends to proceed with its expansion plans with an adjusted timetable and funding source. The company earlier announced that proceeds from the offering will be used to expand its cold chain infrastructure, improve its operating cycle efficiencies and expand its product lines and research and development work.
“The company continues to believe in its growth prospects and hopes to be able to tap the capital markets in the future,” North Star said, adding that “we shall update the exchange of the company’s future plans with respect to the IPO at an appropriate time.”
North Star is a meat vendor and retailer. It operates 360 meat concessions nationwide, with a cold storage capacity of 8.09 million kilograms and a capacity to deliver up to 120,000 kilograms of meat daily. — Luisa Maria Jacinta C. Jocson
