October 17, 2006

 

Philippines' tuna sector to get big boost from Alliance IPO

 

 

Fishing company Alliance Tuna International Inc said its forthcoming initial public offering (IPO) would bolster investor interest in the fishing industry and the country's chances of overtaking Thailand as the world's biggest tuna exporter, reports the Philippine Daily Inquirer.

 

Alliance Tuna, a partnership of Filipino and Thai investors, received approval of the Securities and Exchange Commission (SEC) for registration of its shares last October, which paves the way for its IPO next month.

 

If plans push through, Alliance would be the third company to list on the exchange this year after power producer First Gen Corp and stockbrokerage firm CitisecOnline.

 

Alliance Tuna expects P149-P199 million (US$3-4 million) from the stock offering, according to documents it filed with the SEC.

 

In an offering circular filed with the Philippine Stock Exchange, it said it would offer 134 million new shares at between P1.20 (US$0.02) and P1.60  (US$0.03) per share.

 

Company president and chief executive Jonathan Dee said investors were aware of the substantial growth posted by the tuna industry in the past several years.

 

He said the industry was now considered the second-biggest in the world after Thailand in combined fishing and processing output.

 

According to the Confederation of Philippine Tuna Industry, the tuna sector accounts for 120,000 jobs and export earnings of at least US$180 million a year.

 

The Philippines ranks second in the world in tuna catch and third in canned tuna production, the group said.

 

Dee said that aside from the rich fishing grounds in Mindanao, the industry has an advantage in the availability of support facilities, including cold storage, canning factories and others.

 

He added that General Santos City in Mindanao, where Alliance Tuna and most tuna companies operate, had caught the attention of investors.

 

Dee adds the investors' interest was further boosted by the company's prospective entry into the local bourse and using its offering proceeds in financing its expansion program.

 

Alliance Tuna has hired Abacus Capital and Investment Corp as issue manager and underwriter.

 

The plan is to do the IPO Oct. 23-30 and list shares on the stock exchange on Nov 8.

 

Alliance Tuna's products are carried in 40 countries in five continents.

 

In the first half of the year, the company posted net sales of P768.3 million (US$15.4 million), up 36 percent from the same period last year.

 

Its facilities in General Santos City have a capacity of 200 tonnes a day and employ about 2,000 workers.

 

The city is touted as the country's "tuna capital" and has strategic proximity to the western central Pacific Ocean, which accounts for about 60 percent of the total tuna catch from the Pacific and about 40 percent of the global tuna haul, according to company information.