PSE approves maiden offering of Gaisano's retail unit
MANILA, Philippines – The Philippines Stock Exchange (PSE) approved the P6.17 billion ($134.17 million) maiden offering of Metro Retail Stores Group, Inc., the Gaisano family's retail unit.
The local bourse said in a circular that Metro Retail will seek 920 million shares at P6.10 ($0.13) a piece. Another 92 million shares will be set aside to cover allotment option.
“[PSE's] approval of the initial public offering (IPO) of Metro Retail’s shares is subject to its compliance with all of the post-approval requirements of the exchange,” PSE said.
The final price will be set on November 5 while offer period will be from November 9 to 13. Listing date has been tentatively set on November 24.
Post-IPO, Metro Retail will have a market capitalization of P21 billion ($456.65 million) and public float of 26.71%.
Up to 70% of the offer shares will be set aside from overseas investors while 30% will be allotted for trading participant of the PSE and domestic retail investors.
Metro Retail plans to use the proceeds from the share sale to fund capital expenditures related to the establishment of new stores.
It also intends to acquire existing retail chains and to put up a logistics and distribution center in Cebu.
For 2016, Metro Retail plans to open at least 7 new stores with total gross floor area of 36,000 to 63,000 square meters, including a department store and supermarket in Bacolod under an arrangement with Ayala Land, Inc.
It also eyes a department store and a supermarket near the old Iloilo airport under an arrangement with Megaworld Corp.
First opened in Cebu City in 1982, Metro Retail had a portfolio of 45 stores, with 9 stores in Metro Manila; 10 stores in Luzon; and 26 stores in Visayas as of June 30 this year, and with a total net selling space of approximately 197,873 square meters.
Metro Retail will be the third company to be listed with the PSE this year. The first two were Crown Asia Chemicals Corp. and SBS Philippines Corp.
Several IPOs are still in the pipeline for approval by the corporate regulators, namely:
- DM Wenceslao & Associates Inc.
- Gweilo Corp. (READ: SEC approves P95M IPO of Mario’s Kitchen operator)
- Italipinas Development Corp. (READ: Primavera builder pushes back IPO)
- Philippine Primark Properties
- Philstocks Financial Inc.
- Pointwest Technologies Corp.
- TVI Resource Development (Phils) Inc.