Robinsons Retail firms up IPO worth up to P41.9B

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 this month, debuting as a multiformat 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 each. 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.

The offering will bring to 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 is exercised.

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

Starting as 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.