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Tuesday, April 05, 2005
Tuna firm to go public
IN A bid to strengthen its ongoing expansions, local tuna firm RD Group of Companies is reportedly planning to open its holdings to the public or the stock market.
Renne Subido, RD's vice president for corporate business affairs, said they are currently evaluating the prospects of the company's public listing, which had been identified as a potential source of additional investments for the expansion of its tuna canning operations.
"Citibank is encouraging us (to go public) for our manufacturing group," Subido said this morning.
But he did not give further details about such move saying, "there is nothing concrete yet since it is being evaluated."
The Philippine Stock Exchange (PSE) currently manages the trading of stocks in the country through Manila Stock Exchange and the Makati Stock Exchange.
The two exchanges, through considered as separate entities, are basically trading the same listed issues.
The PSE cited that "the primary purpose of public listing is to increase a company's capital in a cost-effective way.
It reduces the company's reliance on the traditional financiers such as financial institutions and individuals.
Listing allows business expansion without increasing borrowings or draining the company's cash reserves."
A report posted at the website of financial consulting group Ernst & Young cited that RD President Rodrigo Rivera Sr. considered to pursue the company's public listing "to help fund further expansion" in its fishing and manufacturing operations.
"One of his immediate plans is to expand the capacity of the cannery in General Santos from 150,000 tons of tuna/day to 200,000-250,000/day," the report said.
Rivera, who was feted by Ernst & Young as the country's Agribusiness Entrepreneur of the Year for 2004, is currently negotiating for fishing licenses in the waters of Solomon Islands, Palau and other Pacific Islands.
The RD Group's flagship company RD Fishing Industries, Incorporated is now considered among the biggest tuna canners and exporters in the country.
RD Fishing was also the first local company to acquire a fishing boat with a capacity of 80 to 1400 metric tons.
The company exports fresh tuna, the main produce, and canned tuna products to Europe, United States, Japan and other major international markets.
RD's tuna-based cannery based in this city, which was acquired in 2001 from RFM, produces and markets the Diana canned tuna brand in the country.
The company also operates a tuna fishing and cannery company in Papua New Guinea.
For Bisaya stories from Davao. Click here. (April 5, 2005 issue)
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