Keepers seeks nod on P7.5-B follow-on offering

Former shell firm Da Vinci Capital aims to expand liquor distribution operations

THE Keepers Holdings, Inc. said it had filed a registration statement with the Securities and Exchange Commission for its follow-on offering to raise as much as P7.5 billion.

“This is like an IPO (initial public offering) because we are actually introducing a new business, one that is rife with huge potential. Keepers is poised to become the only pure play, imported spirits distribution listed company in the Philippines,” Keepers Holdings President Jose Paulino L. Santamarina said in a statement on Thursday.

Keepers Holdings was previously a shell company under the corporate name Da Vinci Capital Holdings, Inc.

Keepers Holdings or Da Vinci Capital will be in the liquor distribution business after acquiring Montosco, Inc., Meritus Prime Distributions, Inc., and Premier Wine and Spirits, Inc. via a share-swap transaction with Lucio L. Co’s other company, Cosco Capital, Inc.

“The Keepers Holdings, Inc. is now the largest distributor of imported spirits in the Philippines holding 74% volume market share,” Mr. Santamarina said.

Cosco Capital will get 11.25 billion of its common shares of stock.

Since both Cosco Capital and Da Vinci Capital are under the control of Mr. Co, its public ownership fell below the minimum requirement. This led to a trading suspension of Da Vinci Capital’s shares, which were last traded at the stock market on July 7 at P2.95 each.

Up to three billion common shares will be offered in Keepers Holding’s follow-on offering tentatively slated for September this year. These will be sold for around P2 to P2.50 per share and listed on the main board of the Philippine Stock Exchange.

Keepers Holdings said it aims to raise funds to expand its liquor, wine, and specialty beverage distribution operations via a “multi-path expansion through horizontal and vertical integration, alternative distribution channels and new geographic territories.”

It also aims to use proceeds for its working capital and general corporate purposes.

The company assigned China Bank Capital Corp., PNB Capital and Investment Corp., and SB Capital Investment Corp. as joint issue managers, joint lead underwriters, and joint bookrunners for the transaction. — Keren Concepcion G. Valmonte