SEC clears North Star IPO

THE Securities and Exchange Commission (SEC) announced that it approved the initial public offering (IPO) of North Star Meat Merchants, Inc. worth up to P4.5 billion.

In an advisory on Tuesday, the commission said it resolved to render effective the registration statement of North Star covering 1.8 billion common shares, subject to the company’s compliance with certain re-maining requirements.

The meat retailing company will offer to the public up to 360 million common shares priced at up to P10 per share.

The offer will also include 32 million shares to be offered by selling shareholder Golden MJTF Holdings, Inc., plus an overallotment option of 58 million common shares, also priced at up to P10 each.

“Net proceeds from the offering of the primary shares is expected to amount to about P3.462 billion, which the company will use for capital expenditures to expand its cold chain infrastructure, to increase work-ing capital, and to expand product lines,” the SEC said.

Assuming the overallotment option is fully exercised, Golden MJTF Holdings can net up to P864.45 million. North Star Meat Merchants will not receive the proceeds from the sale of the selling shareholder’s shares.

The offer will run from May 30 to June 3, with listing on the PSE scheduled on June 10, according to the latest timetable submitted to the SEC.

The shares will be listed and traded on the main board of the Philippine Stock Exchange (PSE).

The company tapped BDO Capital and Investment Corp. as sole issue manager, which will be joined by China Bank Capital Corp. as joint lead underwriters and joint bookrunners. PNB Capital Investment Corp. and SB Capital Corp. will also serve as co-lead underwriters.

North Star is a meat retailer and supplier that 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 dai-ly. — Luisa Maria Jacinta C. Jocson