The Keepers cuts follow-on offer price


The Keepers Holdings, which now houses Lucio Co’s three liquor distribution firms, has slashed the price for its follow-on offering to just P1.50 per share.

Formerly Da Vinci Capital Holdings Inc., the company that distributes liquor brands, such as Alfonso brandy, expects to raise some P4.5 billion from the primary sale of 3 billion common shares.

The figure is lower than the P5.82 billion to P7.29 billion that the company expects to raise based on an offer price of P2 to P2.50 per share.

“The new offer price range will allow both institutional and retail investors to experience the potential future value of the Keepers Holdings as it transitions from a company without any operations or real resources to a holding company with three highly profitable operating subsidiaries,” company president Jose Paulino L. Santamarina said.

Proceeds from the offering will finance strategic acquisition opportunities, expansion of product portfolio and distribution channels, investments in distribution and logistics network, and working capital.

In September, the company changed the par value of its shares to P0.10 from P0.023 to make it more accessible to individual investors and to improve trading volume and liquidity.

With the change, the company said there will also be adjustments in the market price and number of issued and outstanding shares of the company to 258.75 million common shares from 1.12 billion common shares, with the market price being adjusted from its last closing price of P2.95 per share in July to P12.82 per share effective from September 13.

The change in par value was part of the increase in the company’s authorized capital stock, from which 11.25 billion common shares of stock of the company, now being traded under the ticker KEEPR, were issued in exchange for full ownership of Montosco, Meritus and Premier.

“The offer price range considers the corresponding adjustments to the valuation for this transaction, after implementation of the adjustment to the company’s par value change and increase in capital stock,” the company said.

The company’s shares are still suspended for trading at the Philippine Stock Exchange (PSE) as it fell below the minimum public float due to the backdoor listing of Co’s liquor distribution firms.

The offer period will run from November 4 to 10. The listing of the shares on the main board of the PSE is scheduled for November 19.

China Bank Capital Corp., PNB Capital and Investment Corp., and SB Capital Investment Corp. have been mandated as the joint issue managers, joint lead underwriters and joint bookrunners for the offering.

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