Lucio Co all set for liquor arm’s P7.5B share sale

Lucio Co all set for liquor arm’s P7.5B share sale

The Keepers Holdings Inc. of bilyonaryo Lucio Co, has obtained the Philippine Stock Exchange’s nod to raise up to P7.5 billion from a follow-on offering.

The country’s largest distributor of imported spirits plans to sell up to three billion primary shares at a price ranging from P2 to P2.50 apiece.

Net proceeds from the offering, amounting to between P5.82 billion and P7.29 billion, will be used for strategic acquisitions and the expansion of product lines.

The company is the distributor of Alfonso brandy, Johnnie Walker whiskey, Jose Cuervo, Jim Beam and Jinro in the Philippines.

More than half of the proceeds or about P4 billion will be used to acquire other liquor companies.

About P1 billion will be used to expand the company’s portfolio of brands while another 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 offering will run from November 8 to 12, with the listing targeted on November 22.

China Bank Capital Corp., PNB Capital, and SB Capital Investment Corp. are the joint issue managers, joint lead underwriters, and joint bookrunners for the offer.

According to IWSR Drinks Market Analysis Ltd., The Keepers had a market share of 74 percent based on volume and 66.9 percent based on retail sales value in 2020.

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