MANILA, Philippines – Cebu-based retailer Metro Retail Stores Group Inc., which is all set to list in the local bourse this month, continues to receive positive interest from investors for its initial public offering, a company executive said.
Frank S. Gaisano, chairman and chief executive officer of Metro Retail said there is a high level of interest from both domestic and international investors.
“Investor interest has been very encouraging, and this underscores our confidence in the Philippine capital markets,” Gaisano.
Metro Retail is scheduled to list in the local bourse on November 24.
The company, he said, continues to believe in the strengths and good prospects of the Philippine economy as it is among the least vulnerable of the emerging markets.”
Metro Retail has set the price of its IPO shares at P3.99 per share, which according to underwriter BPI Capital Corp. gives good value for the investing public.
“Given the current landscape and the strong market demand, we feel that the pricing is appropriate and offers good value for investors in the IPO,” said Reginaldo Cariaso, BPI chief operating officer.
Metro is issuing 905.4 million primary shares to raise P3.612 billion, which will be used to accelerate the company’s expansion plans.
If the over-allotment option is exercised, the total offering size will be P3.974 billion.
In consultation with its underwriters, Metro has set the price of its IPO shares at P3.99 per share to include the highest quality investors in the order book, reflect strong demand at that price level, and to give shareholders confidence in the current market conditions.
Metro is the retail arm of Vicsal Development Corp..
At present, it operates 45 multi-format stores in key areas in the Visayas, Central Luzon, National Capital Region, Calabarzon, and the Bicol region.
Metro is the largest department store and hypermarket operator, as well as the second-largest supermarket operator, in the Visayas in terms of retail sales value, according to a 2014 Euromonitor report.
Gaisano said Metro’s move to list in the local bourse is more than just a financial objective.
“It’s a strategic transformational element that will provide us a solid investor base, and help us meet corporate objectives and even be more ready for growth,” he said, adding that the company is committed to protect its market share and improve margins and operating efficiency.