Metro Retail pegs IPO price at P3.99/share

MANILA, Philippines - The Gaisano family’s Metro Retail Stores Group has set the final price for its initial public offering at P3.99 per share or at the low end of the indicated price.

Metro Retail Stores Group chairman and CEO Frank Gaisano said the company has received strong interest from both local and international investors. 

“As part of the institutional book-building process, we have met with a significant number of institutional investors in Hong Kong, Singapore and Manila. We re pleased with the high level of interest in the offering and the subsequent participation from both domestic and international investors in the institutional tranche of our offer,” Gaisano said.

He welcomed the rosy reception amid the prevailing market volatility. 

“Given the recent global market volatility, the positive outcome of the book building was a welcome development. Upon receipt of the permit to sell from the Securities and Exchange Commission, we expect to begin receiving subscriptions for the IPO that can accelerate our expansion plans,” he said. 

The offer period will run from Nov. 9 to 13 while the listing of the shares has been set on Nov. 24.

Metro Retail is seeking to raise up to P6.17 billion from the IPO, bulk of which would be used for expansion.

Majority of the net proceeds from the offer will be used to fund capital expenditures in connection with the establishment of new stores. The remainder of the net proceeds will fund the establishment of a consolidated logistics and distribution center in Cebu and for working capital requirements.

Metro Retail plans to open at least seven stores next year. It has secured 10 sites for stores that are expected to open between 2016 and 2017.

Two stores are  planned in Central Visayas, one in Eastern Visayas, five in Western Visayas and two in Metro Manila. About 30 new sites, located both in the Visayas and Luzon, are under evaluation.

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

Metro Retail will be the third company to debut at the local bourse this year after Crown Asia and SBS Philippines.