ISOC Cold Chain Logistics Inc., led by the Cosiquien family, has filed for an initial public offering (IPO) of P1.49 billion, proceeds of which will be used to expand its operations.
In its registration statement filed with the Securities and Exchange Commission, the company, which uses the brand Orca Cold Chain Solutions, will offer as much as 1.48 billion common shares. These consist of 1.03 billion primary shares, 444.88 million in secondary shares and an over-allotment option of 222 million also in secondary shares, all with a par value of P0.10 apiece. It placed an indicative price of P0.88 per share on its offering.
It will be traded under the ticker symbol “ORCA” and will be listed on the small, medium and emerging board of the Philippine Stock Exchange.
Investment and Capital Corp. of the Philippines has been picked as the deal’s sole issue manager.
Orca was incorporated in October 2017 and utilizes the latest technology and process innovation to the cold storage industry.
It developed the first cold storage facility equipped with a fully automated storage and retrieval system, one of the few cold chain providers that use the technology.
The company has two operating subsidiaries with a combined capacity of 34,342 pallet positions, equivalent to over 34.3 million kilograms. These are Arendelle Cold Logistics Inc., located in Brgy. Bagumbayan, Taguig and Eisberg Cold Logistics Inc., located in Brgy. Poblacion, Caloocan.
Orca is 60 percent owned by Isoc Holdings Inc., a company led by Michael C. Cosiquien, one of the the founders of Megawide Construction Corp. The rest of the 40 percent is owned by Philware Magnate Inc., led by Yarik C. Cosiquien, Michael’s younger brother.
After the offer, Isoc’s ownership will be reduced to 46.2 percent, while that of Philware’s will go down to 30.8 percent. Its public float will be at 23 percent.
The company expects to raise gross proceeds of up to P910.97 million while net proceeds are estimated to reach P841.1 million after deduction of fees and other costs.
The company said the amount will be used for expansion of existing facilities to accommodate other value-added services (VAS); development of new cold storage facilities, new business initiatives; and general working capital.
Orca will allocate some P150 million to expand its Taguig facility, including a blast freezing section and processing area.
“The company believes that this will ensure the growth in the revenue contribution coming from the VAS as well as increase the utilization of the existing cold storage space. By expanding the existing Taguig Facility, the Company can maximize existing demand within the area,” it said.
It will also allocate some P115.2 million to develop a greenfield cold storage facility in Cagayan De Oro, its first facility in Mindanao.
The facility will have a capacity of 8,450 pallet positions and the proceeds will be used to partially fund the construction and the equipment required inside the facility.
Some P167.7 million will be used for the development of another greenfield cold storage facility in Cebu province. The facility will have a capacity of 10,000 pallet positions and the proceeds will be used to partially fund the construction and the equipment required inside the facility. This will be Orca’s first facility in the Visayas region.
Orca intends to allocate P108.2 million for its new business initiatives, such as expanding the business segment catering to the pharmaceutical clients of the firm.
This includes acquiring the necessary equipment for its Caloocan facility and future expansion sites. It said it will also need to expand the on-site teams and upskill existing workers.
“This should allow Orca to cater to other pharmaceutical products other than the Covid-19 vaccine in additional locations.”