The Keepers Holdings Inc., Lucio Co’s liquor distribution arm, has filed its registration statement to raise some P7.5 billion in fresh cash through its follow-on offering tentatively set for September.
In the registration statement it submitted to the Securities and Exchange Commission, The Keepers, formerly Da Vinci Capital Holdings Inc., will sell to the public some 3 billion common shares at an offer price of up to P2 to P2.50 per share.
Da Vinci, formerly Mariwasa Manufacturing Inc., is already listed on the PSE but as a shell company with no operations. Co has carved out its three his liquor, wine and specialty beverage distribution businesses and placed it in the company.
The businessman, who also owns Puregold grocery chain, has infused Montosco Inc., Meritus Prime Distributions Inc. and Premier Wine and Spirits Inc. into The Keepers. The three firms were previously owned by Cosco Capital Inc., Co’s holding firm.
“We are excited by the opportunity to bring our company to the investing public,” The Keepers President Jose Paulino Santamarina said.
“This is like an IPO [initial public offering] because we are actually introducing a new business, one that is rife with huge potential. The Keepers is poised to become the only pure play, imported spirits distribution listed company in the Philippines,” he said.
Stockholders of the listed company gave their go signal to the issuance and listing of up to 3 billion common shares through a follow-on public offering, or a “re-IPO”, during their annual meeting last May 28.
Its shares will be listed on the Philippine Stock Exchange under the ticker symbol KEEPR.
Proceeds from the public offering will used to fund the company’s expansion, horizontal and vertical integration, alternative distribution channels and new geographic territories’ particularly into the high-growth alcoholic beverage market, the company said.
More than half of the proceeds or about P4 billion will be used to acquire other liquor companies, some P1 billion will be used to expand its portfolio of brands, P1 billion will be invested in the distribution and logistics network, and P500 million will be used as working capital. The rest of the funds will be used for general corporate purposes.
The company engaged China Bank Capital Corp., PNB Capital and Investment Corp. and SB Capital Investment Corp. as the joint issue managers, joint lead underwriters and joint bookrunners for the transaction.
Collectively, The Keepers is the largest distributor of imported spirits in the Philippines with a market share of 74 percent based on volume and 66.9 percent based on retail sales value in 2020, according to IWSR Drinks Market Analysis Ltd. Its brands include Alfonso brandy, Johnnie Walker whiskey, Jose Cuervo, Jim Beam and Jinro.