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Monday, January 23, 2017

The Bill Chill plans P600M IPO

Beverage retailer The Big Chill Inc. (TBCI), a subsidiary of publicly-listed Agrinurture Inc. (ANI), plans to debut on the local stock market this year to raise as much as P600 million for an expansion program in Greater China.

Banking on rekindled bilateral ties between China and the Philippines following Pres. Rodrigo Duterte’s visit to Beijing last October, TBCI said in a press statement on Monday that it would raise capital expenditures for such offshore expansion.

Ahead of this equity exercise, the board of TBCI approved the issuance of warrants in favor of qualified shareholders of its parent firm ANI as of record date Feb. 3, 2017.

A warrant gives the holder the right, but not the obligation, to buy or sell a security at a certain price before expiration. The price at which the underlying security can be bought or sold is referred to as the exercise price or strike price.

In this case, a shareholder of ANI owning at least 2,000 shares will have the right to avail of one TBCI warrant at the strike price of P1 or based on TBCI par value, with five-year American call option that will expire on Jan. 19, 2022. The ratio will be one warrant equivalent to one TBCI share.

The proposed initial public offering is expected to range from a low of P500 million to as high as P600 million, a company spokesperson said.

Read more: https://business.inquirer.net/223369/bill-chill-plans-p600m-ipo

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