Robinsons Retail to raise P42B in IPO

MANILA, Philippines – Robinsons Retail Holdings Inc., the retail arm of the Gokongwei family, is expecting to raise P42 billion from its maiden share sale slated this October.

READ: SEC greenlights Robinsons Retail’s IPO

In a memorandum approved by the Philippine Stock Exchange, Robinsons Retail said its initial public offering (IPO) will consist of 461.897 million primary common shares with an overallotment option of up to 22.852 million shares. The shares will be offered at P86.64 per.

The final offer price will be on October 25, while the offer period is from October 29 to November 5.

Robinsons Retail is aiming to be listed with the stock exchange on November 11. 

Of the total shares, 70% or 323.32 million shares will be offered to international investors, while 30% or 138.56 million shares will be allotted to domestic investors.

Market capitalization after the maiden offering is expected at P120 billion and 35% public float.

Proceeds would be used to finance network expansion of various retail formats and renovation of existing stores.

READ: JG Summit sells URC shares to fund Meralco purchase

Retail chain

Robinsons Retail operates the country’s second largest department store and supermarket chain in terms of revenues, and the second largest home improvement store under brands such as Handyman, Do It Best and Howards Storage World.

It also runs the local franchises of Japanese convenience store Ministop, and specialty stores like Toys R Us, Saizen, Dorothy Perkins, Topshop and Topman. 

Next only to the P42.3-billion IPO by Travellers International Hotel Group Inc, the partnership behind Resorts World Manila, the P42-billion IPO could be the second biggest maiden offering in the PSE this year.

READ: Genting’s PH unit postpones IPO amid volatility

Other Gokongwei-owned companies listed with PSE are holdings unit JG Summit Holdings Inc, property arm Robinsons Land Inc, food manufacturing unit Universal Robina Corp (URC) and air transport subsidiary Cebu Air.

JG Summit recently acquired the 27% stake of conglomerate San Miguel Corporation in power giant Manila Electric Co. (Meralco). 

The Gokongwei holding firm said it plans to finance the P72 billion deal through a combination of debt and equity. It has already raised P12 billion from the sale of URC shares. – Rappler.com

Editor’s Note: In a previous version of the story, we mistakenly used the headline “Robinsons Retail to raise P25B in IPO.” We changed this to reflect the P42B as indicated in the body of the story. We regret the error.