Bloomberg News

Ecuador’s Tonicorp Plans $74 Million Initial Public Offering

October 20, 2011

(Updates with brokerage CEO’s comments in third paragraph.)

Oct. 20 (Bloomberg) -- Holding Tonicorp SA, an Ecuadorean dairy producer and distributor, seeks to raise $74 million in the country’s biggest initial public offering in five years, said Denisse Nankervis, head of the brokerage handling the sale.

Tonicorp, based in Guayaquil, plans to sell a 30 percent stake for $6 a share on exchanges in Quito and Guayaquil, Nankervis, the chief executive officer of Inmovalor Casa de Valores SA, said today in a telephone interview. The milk producer will begin the sale on Oct. 26 and may increase the offering to 49 percent of shares, she said.

The company, controlled by the Alarcon family, began producing plastics in 1967 and added dairy products and a distribution arm in the 1970s, according to its website. The Alarcons are now selling shares in a bid to transform the company from a family-owned enterprise into a larger business capable of outliving its founders, Nankervis said.

“The market for dairy products is strong and Toni is known as one of the principal dairy providers” in Ecuador, Nankervis said. “We’ve had quite a bit of appetite for the shares because there aren’t many new equities trading on the exchange.”

Ecuadorean companies sold $200,000 worth of stock on local exchanges this year as of June, according to the most recent data from the nation’s Superintendent of Companies. A $74 million sale would be the biggest since at least 2006, when the agency began recording comparable data.

Tonicorp owns Plasticos Ecuatorianos SA, Industrias Lacteas Toni SA and Dipor SA, which produce, package and distribute the company’s dairy products. Growing demand and “strong” brand recognition in the South American country should boost sales by 51 percent by 2016, Nankervis said.

Tonicorp’s three companies are forecast to have combined sales of $380 million in 2016, up from a projected $252 million this year, she said. Net profit is expected to be $18.3 million in 2011 and $18.7 million next year, she said.

--Editors: Brendan Walsh, Marie-France Han

To contact the reporter on this story: Nathan Gill in Quito at

To contact the editor responsible for this story: David Papadopoulos at

The Aging of Abercrombie & Fitch
blog comments powered by Disqus