Sia’s MerryMart files P1.6 billion IPO

MANILA, Philippines — Injap Sia’s MerryMart Consumer Corp. has filed an application for a P1.6-billion initial public offering (IPO) with a target listing date of April 2.

In its application filed with the Securities and Exchange Commission, MerryMart said it aims to sell 1.6 million primary shares at up to P1.00 per share to raise a maximum P1.6 billion.

Proceeds will be used to grow the supermarket chain and meet its 12-12-12 Vision 2030 or its goal of rolling out 1,200 MerryMart branches nationwide.

MerryMart is eyeing systemwide sales revenue of P120 billion, said Sia.

At present, the MerryMart Group operates four full sized supermarkets.  It seeks to grow this to 27 operating branches by the second quarter.

The 100th branch of MerryMart is expected to open by the fourth quarter of 2021.

MerryMart aims to maintain its growth momentum to reach 600 branches by 2025 and 1,200 branches by 2030, Sia said.

“This is going back to our basics. My grandfather started his grocery store in the 1950’s in our hometown. My parents as well opened their own grocery business way back in 1989 and have been operating successfully for 30 years and counting. This background gives our family extensive experience in the retail business,” said Sia.

MerryMart is a wholly-owned subsidiary of Injap Investments Inc., which founded Mang Inasal and which holds key shareholdings in DoubleDragon Properties Corp. in partnership with Honeystar Holdings Corp. of the Jollibee Group.

Based on the preliminary prospectus filed with the SEC, the target offer period will be on March 23 to March 27.

Merrymart tapped PNB Capital and Investment Corp. as lead underwriter, issue manger and bookrunner for the offering.

Sia said Merrymart aims to cover all the grocery retail categories from small, medium and large retail formats namely Merrymart Store, Merrymart Market and Merrymart Grocery.

Merrymart plans the development of the company brand through company-owned stores, as well as opening it for franchise to the public.

“The smallest format Merrymart Store is a household essential store concept that combines grocery + personal care + pharmacy. The 3-in-1 innovation and expansion through franchising is expected to bring in operational efficiencies and enable Merrymart to rapidly scale up and build up durable competitive advantage. Franchising also creates business opportunities for many budding entrepreneurs,” Sia said.