Yao group to list RC Cola, Zest-O
MANILA, Philippines - The group of former Ambassador Alfredo Yao plans to list its softdrink company RC Cola following the success of its initial public offering (IPO) for Philippine Business Bank (PBB).
The move is expected come ahead of the group's planned IPO for juice drink unit Zest-O Corp. and airline Zest Air.
Yao said that he plans to list RC Cola within the year and expect proceeds to be "definitely be bigger than PBB."
The PBB stock listing, which took place on Tuesday, February 19, generated P3.2 billion.
The PBB stock opened at P34.75, higher than the IPO price of P31.50 per share.
The stock contributed to another record day at the Philippine index, which breached the 6,600 mark for the first time ever.
Yao owns a majority stake in Asiawide Refreshments Corp. (ARC), which has the exclusive rights to manufacture and distribute RC Cola in Southeast Asia.
He said that the company is considering opening manufacturing plants in Thailand, Myanmar and Vietnam.
ARC has 14 plants in the Philippines and is looking toward expansion. It recently opened a plant in Cagayan de Oro and is set to open another facility in Pangasinan within February.
Yao, who said that he is eyeing a public float of 30% to 35% for ARC, attributed RC Cola's competitiveness to its use of returnable bottles, which makes the beverage cheaper.
ARC, the exclusive distributor of American brand RC Cola, began its operations in 2002.
Among the company's soft drink brands are RC Cola, Zest-O and RC Root beer. - Rappler.com