SEC approves SSI Group’s public offering plan

Upscale retailer SSI Group Inc. has obtained the approval of the Securities and Exchange Commission (SEC) for its planned stock market debut that will involve shares worth as much as P6.5 billion.

In a statement on Monday, SSI said it would sell 864.2 million shares in common shares at a maximum price of P7.50 each. The offer price was cut from an earlier price ceiling of P12.50 per share.

“The maximum price of P7.50 has been set, following the strong demand received from institutional investors during the cornerstone process, and values the company at an attractive price-to-earnings multiple reflective of SSI Group Inc’s leading position in the speciality retail industry,” SSI president Anton Huang said.

There will also be an oversubscription option of 129.63 million shares, which could raise the initial public offering (IPO) size to P7.45 billion.

With the release of the SEC’s “pre-approval,” SSI Group said it would embark on a domestic and international road show. The retail offer period will start following the domestic and international road show, with the IPO scheduled in November.

The SSI Group also noted “strong interest” on the proposed IPO, with the company already securing cornerstone commitments for 34 percent of the offering from institutional investors that include Bank of the Philippine Islands Asset Management and Trust Group, Government Service Insurance System, Havenport Asset Management Pte Ltd., Macquarie Asia New Stars Fund, MLIS—York Asian Event-Driven Ucits Fund, and York Asian Opportunities Investment Master Fund.

Of the total base offer, about 80 percent will consist of primary shares to be issued by the company and 20 percent will be secondary shares that will come from existing shareholders.

The international lead managers and underwriters are Credit Suisse (Singapore) Ltd. and HSBC (Singapore) while BPI Capital Corp. is the sole domestic lead manager and underwriter.

SSI Group Inc. is the country’s leading specialty store retailer operating 103 international brands as of end-June, including Hermès, Prada, Gucci, 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.

The company is also developing, managing and operating the FamilyMart convenience stores chain through a joint venture with Ayala Land Inc., as well as Japan’s FamilyMart Co. Ltd. and Itochu Corp. of Japan.

The SSI Group has also recently opened Wellworth Department Store, a mid-market department store, likewise under a joint venture with ALI.