Tantoco firm sets P12.4-B public offer

Tantoco family-led SSI Group Inc., the country’s leading luxury retailer, plans to raise as much as P12.42 billion from a stock market debut that seeks to ride on the strong local consumer play.

Based on a registration statement filed at the Securities and Exchange Commission, SSI plans to offer 864.225 million common shares for up to P12.50 each. There will also be an oversubscription option of 129.63 million shares.

Of the base offer, primary shares will comprise of 695.7 million shares, translating to about P8.7 billion in proceeds. On the other hand, 168.52 million existing common shares will be offered by certain selling shareholders related to the controlling Tantoco family on a secondary basis.

The target is to launch the IPO by October and list on the Philippine Stock Exchange (PSE) by Nov. 5, but this is subject to further approvals. The exercise will bring to public hands about 26.1 percent of SSI’s shares.

“We expect to use the proceeds of the planned IPO (initial public offering) to expand our international brand portfolio and our retail presence throughout the country, and support the rapid pace of expansion of our Family Mart store network and Wellworth department stores,” SSI president Anton Huang said in a press statement Wednesday.

“We have a growing middle class that has an appetite for quality lifestyle products. Our luxury market has also found that the shopping experience we offer them in the Philippines is at par with what they experience overseas,” Huang added.

The company, which includes Stores Specialists Inc. as part of its group, retails 103 international brands, including Hermès, Prada, Gucci, Burberry, Salvatore Ferragamo, Lacoste, Michael Kors, Kate Spade, Gap, Old Navy, Zara, Stradivarius, Bershka, Aeropostale, Samsonite, Nine West, Payless Shoe Source, Beauty Bar, Marks and Spencer, Pottery Barn and TWG, among others.

SSI Group is also developing, managing and operating convenience stores through the FamilyMart chain, which is a joint venture with Ayala Land Inc. (ALI), Japan FamilyMart and Itochu Corp. of Japan. It recently opened its first Wellworth Department Store, a mid-market Department Store, under a joint venture with ALI.

As of end-June, SSI had 655 retail locations in 68 malls throughout the country.

“With this planned IPO, we expect to be able to offer more global brands in more locations and make shopping convenient and easily accessible,” Huang said.

BPI Capital Corp., Credit Suisse (Singapore) Ltd. and HSBC Singapore branch will be the joint global coordinators and bookrunners of the planned IPO.

SSI was established in 1987 to operate the Rustan’s group’s specialty retail operations.