RFM Corp. on Wednesday said it is reviving plans to raise money by selling shares in the stock market.
The food and beverage company noted in a disclosure to the Philippine Stock Exchange money from the equity offering will fund acquisitions and expansion plans.
“In the regular meeting held today, 31 July 2013, the Board of Directors agreed to proceed with the equity fund raising,” RFM said.
“The resolution was passed due to the renewed interest and confidence of investors in the Philippine equities market and in the growth plans of the corporation, as well as the interest shown by several investing funds to invest in the corporation as it pursues possible acquisition and expansion opportunities and capital expenditures,” the company added.
Concepcion-led RFM wanted to raise money from the stock market in January 2011, but plans were deferred as the market was showing signs of volatility at that time. The plan covered an equity placement and subscription transactions of up to 450 million shares.
The company estimated it needed P1 billion to expand its pasta and ice cream facilities.
RFM posted P315.2 million in net income during the first five months of the year, up 32 percent from a year earlier.
Consolidated revenues reached P4 billion, down 6.7 percent in the same comparable period, with its Swift meat business no longer a contributor to consolidated sales.
On top of its selling and distribution service deal in packaged fruits with Dole Philippines,
the company recently signed a distribution agreement with condiments brand Marca Piña whose flagship product is soy sauce. — VS, GMA News