April 08, 2014

Century Pacific plans IPO

Leading canned food manufacturer Century Pacific Foods Inc has reportedly obtained SEC approval on its plan to offer up to 229.65m share to the public at a maximum of P14.50 apiece. The company plans to generate up to P3.3b to be used for its expansion, opportunistic acquisitions, debt retirement and working capital requirements. The offer period is set for 23-29 April while listing is slated for 6 May this year.

Our take: Century Pacific is a 35-year old company and should offer an interesting addition to the current roster of consumer-related plays. It has a portfolio of strong brands for canned tuna (Century Tuna), sardines (555), canned meat (Argentina and Swift) and canned and powdered milk (Angel and Birch Tree). However, the IPO will only account for 10.3% of total outstanding shares. No valuations have also been cited at the IPO price. – WealthSec