Retail group SSI expanding market presence
Screengrab from https://ssigroup.com.ph/
MANILA, Philippines–High-end retailer SSI Group is riding on increasing consumer affluence in the country to ramp up the expansion of its store footprint and incorporating e-commerce into its growth story.
Tantoco-led SSI Group has narrowed the price range for its upcoming P6.5-billion initial public offering (IPO) to P7 to P7.50 per share, which officials said was a “reasonable” valuation based on discussions with underwriters and large institutional investors.
Considered in the valuation is SSI’s ability to generate earnings and cash flow, its short- and long-term prospects, overall market conditions and the market price of listed comparable companies particularly in Southeast Asia, based on the company’s prospectus.
The IPO price is expected to be set Thursday and the offering will run from Oct. 27 to 31. The inaugural trading on the Philippine Stock Exchange will be on Nov. 7.
The group is conducting road shows in Singapore, Hong Kong and London to pitch to investors a unique business model combining a mix of high- and mid-priced brands under its retailing portfolio.
During the investors briefing last week, SSI president Anthony Huang said he believed that selling selected products online would be part of the retail landscape over the long term especially for some of the specialty products distributed by SSI.
As such, he said SSI would like to be among the first movers in e-commerce among the country’s top retailers.
SSI has likewise ramped up the expansion of its selling area. From around 98,000 square meters (sqms) of gross selling space as of end-2013, the group now has 111,585 sqm as of end-June.
For the full year, about 40,000 to 45,000 sqms will be added, a “marked expansion” compared to the 15,000 to 30,000 sqm of additional space launched in previous years, said Marti Atienza, SSI vice president for investor relations.
The group expects to end this year with 740 to 750 stores selling its core brands, excluding those to be rolled out under a partnership with Ayala Land like FamilyMart and Wellworth. Its retail network as of end-June consisted of 655 stores located in 68 malls across the country.–Doris C. Dumlao
