Gokongwei-led retailer Robinsons Retail Holdings Inc. has priced its initial public offering at P58 per share, to raise $650 million in fresh funds for store network expansion and renovation of existing stores.
The IPO was priced at the low end of the offer range of P55 to P65 per share, which the company said was equivalent to a price-to-earnings ratio of 20 to 24 times versus comparable price multiples in the region of 20 to 30 times.
The P58 per share price would bring the multi-format retailer’s post-IPO market capitalization of P80.3 billion, UBS Philippines managing director Lauro Baja said in a text message Thursday.
Baja said the international tranche of the offering was oversubscribed by 4.5 times the base offer, with “world class investors” participating. He noted that “long-term only” investors accounted for 67 percent of demand while hedge funds and private banks accounted for 35 percent.
UBS is one of the global coordinators, bookrunners and international lead managers of Robinson Retail’s IPO. UBS is also the leading bookrunner in Southeast Asian equity capital markets this year with a market share of 15 percent, according to Dealogic.
A total of 135 investors participated in this equity deal, most of them from Asia (58 percent). Investors from Europe and the United States accounted for 21 percent each.
Robinsons Retail is offering up to 461.9 million primary common shares with an overallotment option of up to 22.85 million shares. At the IPO price, this will raise P28.11 billion ($650 million).
The offering will bring to public hands up to 35 percent of the company’s shares.
The public offering will run from Oct. 29 to Nov. 5. Listing on the PSE is slated for Nov. 11.
Joining UBS as joint global coordinators, bookrunners and international lead managers are Deutsche Bank and JP Morgan 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 to 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 the end of 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 is led by its president and chief operating officer Robina Gokongwei-Pe and chair John Gokongwei. Doris C. Dumlao