Puregold raises P6.5B from overnight placement

Manila, Philippines - Puregold Price Club Inc. , the country’s second largest grocery retailer, raised P6.5 billion from an overnight placement of shares, resulting in the increase of its public float to 32 percent.

In a disclosure to the Philippine Stock Exchange, Puregold said it completed a secondary offering of 250 million common shares owned by the family of Chinese-Filipino businessman Lucio Co   at P26 each.

Buoyed by robust demand from global institutional investors, Puregold increased the size of its overnight placement to 250 million from 220 million shares. The issue was several times oversubscribed.

UBS Investment Bank acted was the sole global coordinator and bookrunner for the transaction.

With the consolidation of high end retailer S&R into its books and the acquisition of 19 supermarkets under the Parco brand, Puregold now has a total branch network of 134, located in 35 cities and 28 municipalities across the country.

The purchase was in line with the Co family’s goal to double the number of its stores by 2015 as it expands into untapped areas in Metro Manila as well as Visayas and Mindanao.

Puregold acquired 100 percent of S&R Membership Shopping club through a P16.5-billion share-swap deal.

The acquisition has allowed Co to consolidate his retailing businesses into a publicly-listed vehicle targeting all market segments, and further strengthened the group’s leading position in the industry.

Puregold caters to the lower-income segment with a market share of 16 percent. On the other hand, S&R, which caters to middle and upper class consumers, has a market share of 3.3 percent. 

S&R has a total membership base of over 214,700 across the country. It operates six stores – in Bonifacio Global City, Congressional Ave. in Quezon City, Alabang in Muntinlupa, Aseana Business Park in Baclaran, San Fernando in Pampanga and Mandaue City in Cebu.