MANILA, Philippines — Not even the market turmoil caused by the global coronavirus pandemic can stop grocery operator MerryMart Consumer Corp.'s stock market debut this year.
In a letter to the Philippine Stock Exchange on Friday, the Edgar “Injap” Sia II-controlled company said it is offering some 1.6 billion shares to the public at a final price of P1 apiece.
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MerryMart's decision to go ahead and go public came amid extraoridinary volatility at the local stock market fueled by investor uncertainty over the devastation of the virus on the global economy.
The retail chain is targeting to list on June 15, already pushed back by two months from the original April 2 listing date when the enhanced community quarantine in Luzon was less than a month in effect. Proceeds will be used by the company to expand its outlets.
MerryMart plans to open 12 additional stores by the second quarter.
Although the market is not in good shape at the moment, Beatrice Lopez, equity analyst at Manila-based brokerage firm Regina Capital Development Corp., believes there is robust investor appetite for MerryMart shares.
Lopez said shares in listed retail companies like PureGold Price Club Inc. and Robinsons Retail Holdings Inc. have remained high due to expectations that their businesses continue to benefit from Filipinos stocking up supplies to avoid going out during the lockdown.
"I think some investors are interested in the retail sector since the panic-buying likely somehow boosted earnings. Also, since it's an essential business, disruption in operations were limited," Lopez said in a text message.
"It is likely that the same may occur on MerryMart's IPO," she added.