Robinsons Retail to launch up to P41.9B IPO this October

MANILA, Philippines — GOKONGWEI-led Robinsons Retail Holdings Inc. has firmed up an initial public offering (IPO) worth as much as P41.9 billion to be launched at the end of October, debuting as a multi-format retail play anchored on the consumption-driven Philippine economy.

In a memorandum posted on the Philippine Stock Exchange, Robinsons said it would offer up to 484.75 million primary common shares at a maximum price of P86.64 per share. This will consist of a base offer of as much as 461.9 million shares and an overallotment option of up to 22.85 million shares.

This offering will bring to the public hands at least 33.91 percent of the retailer’s shares, which may increase to as much as 35 percent if the overallotment option were exercised.

The IPO price will be finalized by October 25 while the offering will run from Oct. 29 to November 5. Listing on the PSE is targeted by Nov. 11.

The offering will take place immediately after a similarly large IPO worth as much as P42 billion planned by gaming firm Travellers International Hotel Group Inc.

Both have taken advantage of the deferment of the US Federal Reserve’s tapering of monetary stimulus to revive their IPO plans.

If the maximum pricing is achieved, these equity deals could mark the largest IPOs in local capital market history.

Deutsche Bank, JP Morgan and UBS are the joint global coordinators, bookrunners and international lead managers while Maybank ATR Kim Eng Capital is the sole domestic lead underwriter.

A department store in Manila in 1980, Robinsons Retail has expanded into five other business segments, entering into the supermarket business in 1985, the Do-It-Yourself hardware/home improvement business in 1994, the convenience store and specialty store business in 2000 and the drugstore business in 2012.

Robinsons Retail is led by its president and chief operating officer Robina Gokongwei-Pe and chair John Gokongwei. As of end-June, it had a portfolio of 940 stores nationwide, with 428 stores in Metro Manila, 423 in other parts of Luzon, 55 in Visayas and 34 in Mindanao for a total net selling space of about 545,256 square meters.

Robinsons Retail intends to use bulk of net proceeds to fund capital expenditures in connection with the establishment of new stores and the remaining proceeds will be used to fund renovation of existing stores and repayment of all outstanding bank loans.