Gaisano’s Metro Retail files P5.6-B IPO

MANILA, Philippines - The Gaisano family’s Metro Retail Stores Group Inc. formally filed with state securities regulators its application for an initial public offering to raise about P5.6 billion.

In a prospectus submitted to the Securities and Exchange Commission (SEC), Metro Retail Stores is offering  920 million shares at P6.10 each.

Shareholders Valueshop Stores Inc. and Vicsal Development Corp. have an option to  sell an additional 92 million shares to cover over allotments.

The group decided to revive plans to go public this year to raise funds for its expansion.  The planned IPO has been on the drawing board since 2011.

It has  tapped BPI Capital and Deutsche Bank AG as joint global coordinators.

The Metro Retail Stores Group is one of the leading retail groups in the Philippines and in the Visayas. The company opened its first store in 1982 and has become a market leader in the Visayas.

According to Euromonitor, the company is the largest department store operator, largest hypermarket operator and the second largest supermarket operator in the Visayas in terms of retail sales in 2014.

It is also the largest retailer in Cebu across the three formats, Euromonitor said.

As of June 30, the  company had a total store count of 45 stores in the Philippines.

The Gaisano Group has other interests aside from retail.

In 2007, the Gaisano Group ventured into the investment banking business with the incorporation of Vicsal Investment Inc., whose main functions include underwriting securities for companies, brokering treasury notes and brokering equities. It also provides strategic advisory services for mergers, acquisitions and other types of financial transactions.

According to its website, Vicsal’s interests now include Wealth Development Bank, an established development bank based in Cebu with a network of 11 branches in the Visayas and Mindanao areas; Taft Property Venture and Development Corp., which is engaged in middle and high-end residential housing and subdivision development and commercial building projects which include the Taft Financial Center building at the Cebu Business Park; and Filipino Fund Inc., a publicly-listed closed end mutual fund company.

The group also has a travel agency, Grand Holidays Travel and Tours, which is currently the leading travel agency in the Visayas and Mindanao and the only one outside Metro Manila to be voted into the Top 50 Travel Agents in the Philippines.