Rustan’s unit plans P12-B IPO

MANILA, Philippines – SSI Group Inc., which handles the Rustan’s Group’s retail operations, is eyeing to raise up to P12.42 billion ($282.54 million*) from an initial public offering (IPO) of shares.

In a filing with the Securities and Exchange Commission on Wednesday, August 13, SSI said it would sell 864.22 million primary and secondary shares, and another 129.63 million shares to cover overalloment option. The shares will be sold for P12.50 ($0.28) apiece.

Offer period will be from October 23 to 29. Listing date was tentatively set on November 5.

BPI Capital Corporation, Credit Suisse (Singapore) Limited, and The Hongkong and Shanghai Banking Corporation Limited, Singapore Branch will be joint global coordinators and bookrunners of the planned IPO.

SSI plans to use IPO proceeds to expand its local and international operations.

“We expect to use the proceeds of the planned IPO to expand our international brand portfolio and our retail presence throughout the country; and support the rapid pace of expansion of our FamilyMart store network and Wellworth department stores,” SSI president Anton Huang said.

SSI was first established in 1987 to handle the Rustan’s Group’s specialty retail operations. Starting with Lacoste, then Salvatore Ferragamo and Marks and Spencer, SSI quickened its growth in 1995 and added international brands such as Ralph Lauren, DKNY, Kenneth Cole, Burberry, Tod’s, Bottega Veneta, YSL, Hugo Boss, Banana Republic, Massimo Dutti, Tory Burch, and Old Navy.

SSI, which includes Stores Specialists Inc. as part of its group, retails 103 international brands including Aeropostale, Beauty Bar, Bershka, Gap, Gucci, Hermès, Kate Spade, Michael Kors, Nine West, Payless Shoe Source, Pottery Barn, Prada, Samsonite, Stradivarius, TWG, Zara, among others.

The company is also developing, managing, and operating convenience stores through the FamilyMart chain, a joint venture with Ayala Land Inc., Japan FamilyMart, and Itochu Corporation of Japan.

SSI also recently opened its first Wellworth, a mid-market department store, under a joint venture with Ayala Land.

As of end of June 2014, SSI had 655 retail locations in 68 malls throughout the country.

“With this planned IPO, we expect to be able to offer more global brands in more locations and make shopping convenient and easily accessible,” Huang said. – Rappler.com

*($1 = P43.96)