Robinsons Retail revives P42B IPO plan

MANILA, Philippines - The Gokongwei family’s Robinsons Retail Holdings Inc. is reviving its previously deferred P42-billion initial public offering (IPO) late this month.

Fresh funds from one of the largest share sale in the country will allow the company behind Robinsons supermarkets and department stores to put up new stores and renovate existing branches, the company said.

In a memorandum circular, the Philippine Stock Exchange (PSE) said it approved Robinsons Retails application to list in the local bourse.

Robinsons Retail can now sell up to 484.75 million shares at maximum price of P86.64 each that will generate up to P41.99 billion in fresh capital.

The retail giant aims to sell 461.89 million shares primary shares and 22.85 million shares through the over-allotment option in case of strong demand.

The offer price will be finalized on Oct. 25, followed by the offering period from Oct. 29 to Nov. 5.

Robinsons Retail’s shares will be listed and will start trading in the PSE on Nov. 11.

Of the primary shares 323.32 million will be sold to foreign investors and the remaining 138.56 million will be allotted to domestic investors.

“The company will use the proceeds from the offer to fund its expansion plans,” Robinsons Retail said.

Specifically, the company will put up new stores and renovate existing branches of Robinsons Supermarkets, Robinsons Department Stores, and DIY, specialty, drug and convenience stores; and pay outstanding bank loans.

Robinsons Retail is the country’s second largest retailer, next only to SM Retail Inc. of the country’s richest man Henry Sy. Robinsons Retail Group owns and operates 35 department stores and 73 supermarkets nationwide.

The company’s profits nearly tripled to P1.34 billion in 2012 from P476.07 million a year ago.

The IPO will be facilitated by joint global coordinators and international lead managers UBS, Deutsche Bank and J.P. Morgan, and domestic lead underwriter Maybank ATR KimEng Capital Partners Inc.

Late in June, the Gokongwei family decided to defer Robinsons Retail’s IPO due to the then provailing market volatility.

The IPO could be one of the largest share sale of a Filipino company.

In April, LT Group Inc. of taipan Lucio Tan raised a record P37.72 billion from a follow-on offering while SM Investments Corp. secured P28.75 billion during its IPO in 2005. Resorts World Manila owner Travellers International Hotel Group Inc. also plans to raise as much as P42.29 billion from its IPO late this month.

Robinsons Retail is under conglomerate JG Summit Holdings Inc., which is also into budget airline (Cebu Pacific), banking (Robinsons Bank Corp.), petrochemicals (JG Summit Petrochemicals Corp.), and snacks and beverage (Universal Robina Corp.).