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
In these changing times, courage and clarity become even more important.
Take discussions to the next level with Rappler PLUS — your platform for deeper insights, closer collaboration, and meaningful action.
Sign up today and access exclusive content, events, and workshops curated especially for those who crave clarity and collaboration in an intelligent, action-oriented community.
As a bonus, we’re also giving a free 1-year Booky Prime membership for the next 200 subscribers.
You can also support Rappler without a PLUS membership. Help us stay free and independent by making a donation: https://www.rappler.com/crowdfunding. Every contribution counts.