Retail giant pays off P150M bank loan with IPO proceeds
CEBU, Philippines - Cebu-based Metro Retail Stores Group Inc. took out P150.38 million from the proceeds of its initial public offering (IPO) to pay off a short-term loan with the Bank of the Philippine Islands.
In a disclosure to the Philippine Stock Exchange, the Gaisano-led multi-format retailer said the amount borrowed was P150 million with an interest of P379,750.
The Cebu retail giant debuted at the PSE on November 24 last year, raising P3.97 billion from the issuance of 905.375 million primary shares at P3.99 per share, with an over-allotment option of up to 90.537 million shares.
MRSGI set a public float of about 26 percent after its maiden share sale.
The Gaisano retailer planned to spend the net proceeds from the IPO to fund its store network expansion, establishment of a consolidated logistics and distribution center and working capital requirements.
It was the third company to go public last year after Crown Asia Chemicals Corp. and SBS Philippines Corp.
Shares of MRSGI closed at P3.52 per share yesterday, down 1.40 percent from the previous close of P3.57. (FREEMAN)
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