Robinsons Retail IPO expected to raise P28 B

INQUIRER FILE PHOTO

MANILA, Philippines – Robinsons Retail Holdings Inc. has priced its initial public offering at P58 per share, which translates to a potential of $650 million or P28.11 billion in fresh funds to put up new stores and refurbish old ones.

The IPO was priced close to the low end of the offer range of P55 to P65 per share, which the company earlier said was equivalent to a 2014 price-to-earnings ratio of 20 to 24 times versus comparable price multiples in the region of 20 to 30 times.

The pricing of P58 per share is expected to give the multi-format retailer a post-IPO market capitalization of P80.3 billion, UBS Philippines managing director Lauro Baja said in a text message early Thursday.

Citing warm demand from the offshore market, Baja said the international tranche of the offering was oversubscribed by 4.5 times the base offer, with “world-class investors” participating in the equity deal. He noted that “long-term only” investors accounted for 67 percent of demand while hedge funds and private banks accounted for 35 percent.

Robinsons Retail is offering up to 461.9 million primary common shares with an overallotment option of up to 22.85 million shares which together would raise P28.11 billion ($650 million) at this IPO pricing. This offering will bring to the public hands up to 35 percent of the company’s shares.

The public offering will run from Oct. 29 to November 5. Listing on the PSE is targeted by Nov. 11.

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

Starting with a department store in Manila in 1980, Robinsons Retail has expanded into five other business segments, entering 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.

As of end-June, it had 940 stores nationwide, with 428 stores in Metro Manila, 423 in other parts of Luzon, 55 in the Visayas and 34 in Mindanao for a total net selling space of 545,256 square meters.

Robinsons Retail is led by its president and chief operating officer Robina Gokongwei-Pe and chair John Gokongwei.