Robinsons Retail cuts IPO price range
MANILA, Philippines – Robinson Retail Holdings Inc., the retail arm of the Gokongwei group, cut the value of its planned initial public offering (IPO).
The company will sell shares to the public for P55 to P66 apiece, down from the previous maximum price of P86.64 that it had set.
With the new price range, the company's IPO will raise between P26.7 billion and P32 billion, according to Denis Du, executive director of Maybank ATR Kim Eng Capital Partners, the lead domestic underwriter for the maiden offer.
Robinsons Retail will sell up to 484.749 million shares, including over-allotment.
Robinsons Retail senior vice president and chief strategist Bach Johann Sebastian, in a press briefing following the company's domestic roadshow, said the offer price was lowered after a "price discovery" process conducted by the underwriters.
He said the new price range is at par with the valuation of retail companies in the region.
Robinsons Retail operates department stores, supermarkets, home improvement stores, convenience stories, drug stores and specialty stores.
It plans to use IPO proceeds to fund the expansion of its retail networks and renovation of existing stores.
The company had initially targeted to raise as much as P42 billion from its IPO.
It will set the final offer price on October 24. – Rappler.com