Robinsons Retail sets IPO price at P58 apiece

MANILA, Philippines – Robinsons Retail Holdings Inc, the Gokongwei group’s retail unit, is offering its maiden shares at P58 apiece.

The final price is on the lower end of the P55-P66 price range the company announced a week ago.

At P58 per share, the proceeds of its initial public offering (IPO) is expected to reach P28.1 billion or $650 million. It is the biggest IPO of 2013.

Market capitalization of Robinsons Retail after the maiden share sale would be P80.3 billion.

Robinsons Retail is selling 461.897 million common shares, and has set aside 22.852 million shares as over-allotment.

The international offering period already began in October 14 and is to end Thursday, October 24.

It has been oversubscribed by 4.5 times, said UBS Philippines managing director Lauro Baja in a text message to reporters. Long-term investors account for 67% while private funds compose the 33%.

Domestic offering period is from October 29 to November 5. Listing will be on November 11.

Establishments run by Robinsons Retail include department stores, supermarkets, home improvement stores, convenience stories, drug stores and specialty stores.

IPO proceeds would fund the expansion of its retail networks and renovation of existing stores. – Rappler.com