Axelum banks on resurgence of PH coconut industry

Leading integrated coconut product manufacturer and exporter Axelum Resources Corp. hopes to leverage on the growth of exports of Philippine coconut products and the global wave of health and wellness trends as it embarks on its initial public offering.
“The timing is perfect. We should seize the moment and go public,” said Axelum chairman Romeo Chan

According to Mr. Chan, Philippine coconut exports continue to grow. “Over the past 10 years, exports by the Philippine coconut industry have grown by approximately 10 percent annually. Traditional coconut products, such as copra and crude coconut oil grew by around 11 percent annually. Non-traditional products, on the other hand, grew by 25 percent annually,” he shared.

Most of the company’s products fall under this faster growing non-traditional category. These include the production of coconut water, coconut milk powder, coconut cream, and others. In particular, the company is bullish on its two largest products – desiccated coconut and coconut water.

Citing a recent study by the University of Asia and the Pacific, Axelum president Henry Raperoga said that over the next five years, the annual growth rate in desiccated coconut sector is expected to be in the high single-digits and the growth rate in coconut water is expected to be in the mid- to high-teens. “Axelum’s other product lines are likewise in sectors expected to achieve double digit growth rates over the next few years,” he added.


Raperoga explained that the high growth rates are driven by global trends toward healthier diet and lifestyle. “By their nature, coconuts are dairy-free and gluten-free. Given the farming practices in Northern Mindanao, the coconuts we process are likewise GMO-free and a growing proportion of them organic,” he highlighted.

The company said the growth in coconut products are also driven by new applications of the coconut. “Before coconuts were mainly used as cooking ingredients or converted into cooking oil. Today, coconuts are used to produce juices, coffee creamer, sweeteners, cocktail mixes, dairy replacement products, and others,” enumerated Mr. Raperoga. “We are even starting to see coconuts being used in the production of personal care products and pharmaceuticals.”

Part of the net proceeds from the primary offer will be used to install new manufacturing facilities for new products, and improve and expand the company’s existing manufacturing facilities.

The proceeds will also be used to fund the company’s strategic acquisitions and expand its domestic and international distribution networks. A portion will be utilized to retire the company’s loans, reduce payables, and for other capital expenditure requirements.

First Metro Investment Corporation, the investment banking arm of the Metrobank Group, is the issue manager, bookrunner and joint lead underwriter of the IPO. BPI Capital Corporation is also joint lead underwriter.

Rabboni Francis Arjonillo, First Metro president, earlier expressed their excitement over Axelum’s IPO, describing it as the investment opportunity that investors have long been waiting for.


“The company is poised to continue its market leadership and is well-positioned to expand its market base not only because it is one of the most complete players in the coconut industry given its access to raw material inputs, diversified portfolio of high-quality coconut products, exclusive and company-owned distribution facilities, and strong relationship with well-established customers. It also has the distinct advantage of producing a wide array of products that utilizes almost all of the components of the coconut,” said Mr. Arjonillo.

A REGISTRATION STATEMENT RELATING TO THESE SECURITIES HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION, BUT HAS NOT YET BECOME EFFECTIVE. THESE SECURITIES MAY NOT BE SOLD NOR OFFERS TO BUY THEM BE ACCEPTED PRIOR TO THE TIME THE REGISTRATION STATEMENT IS RENDERED EFFECTIVE. THIS COMMUNICATION SHALL NOT CONSTITUTE AN OFFER TO SELL OR BE CONSIDERED A SOLICITATION TO BUY.

About Axelum Resources Corporation

Axelum Resources Corp., formerly Freshfruit Ingredients Inc., is an export-oriented manufacturer of premium coconut products and recognized as one of the leaders in the industry. Axelum today manufactures desiccated coconut, coconut milk powder, coconut cream, coconut water, creamed coconut, reduced fat coconut, coconut oil and virgin coconut oil, devoting a large portion of its production for export to the world’s major continents. We bank on innate manufacturing expertise to enhance existing production and create new food items of superior quality and stability. Axelum conforms to the unyielding standards of the most reputable names in the food industry with the distinction of being truly and undeniably world-class. For more information on Axelum, visit http://www.axelum.ph.