MANILA, Philippines - Corporate regulator Securities and Exchange Commission (SEC) has approved the planned initial public offering of the Gokongwei family’s Robinsons Retail Holdings Inc., proceeds of which will be used to expand its chain of department stores, supermarkets and other retail and concept shops.
In a filing with the SEC, the company will offer up to 484.75 million new shares, consisting of 461.89 million primary offer and 22.85 million over-allotment option.
The bulk of the primary offer of about 323.32 million shares are for international buyers and only 138.57 million common shares will be offered to Philippine investors.
Deutsche Bank, JPMorgan and UBS are the global coordinators and joint book runners, while Maybank ATR Kim Eng Capital Partners Inc. is the sole domestic underwriter.
Robinsons placed an indicative price of P86.64 per share or a total of P39.05 billion in net proceeds after taxes and fees.
“The allocation of the offer shares between the domestic offer and the international offer is subject to adjustment as agreed between the international lead managers and the sole domestic underwriter,” Robinsons said in its prospectus.
The SEC said chainlisting is not an issue for Robinsons since it is not a subsidiary nor a parent of any listed company under the Gokongwei group.
Chainlisting, according to PSE listing rules, applies if a subsidiary or a parent company of an existing listed issuer will not be considered for listing if the assets and operations of the applicant are substantially the same as those of the existing listed issuer.
The SEC said Robinsons only shares common shareholders of privately held JE Holdings and individual family members of the Gokongwei and with the listed firms JG Summit Holdings, Robinsons Land Corp., Cebu Air and Universal Robina Corp.
The IPO of Robinsons Retail has been in the works during the early part of the year but the Gokongwei group decided to postpone its implementation, citing market volatility.
Robinsons said more than half of the proceeds of about P20.33 billion will be spent to expand its supermarket chain, P2 billion were allocated for department stores, P1.39 billion for the do-it-yourself (DIY) shops like hardware, P4.76 billion for convenience stores such as the Ministop chain, P1.9 billion for drugstores and P3.14 billion for specialty stores.
About P2.89 billion will be used for renovation of existing stores, P1.7 billion for repayment of bank loans and P850 million for other corporate purposes.
The company opened its first Robinsons Department Store in Manila in 1980, entered the supermarket business in 1985, the DIY subsidiary in 1994, the convenience and specialty stores in 2000 and the drug store business in 2012.
Research firm Euromonitor said the company’s affiliates are not a market leaders in their respective sectors. The department stores and supermarket businesses, it said, is cornered by the SM group while the convenience stores under the Ministop brand is led by Philippine Seven Corp.’s 7-Eleven stores.
Robinsons, however, is the largest multiformat retailer in the country in terms of revenue.