Credit Suisse exercises overallotment option in SSI

Investment bank Credit Suisse has acquired P972.2 million worth of shares in SSI Group Inc. of the Tantoco family, exercising the option to take up additional shares as part of the specialty retailer’s stock market debut. In connection with its initial public offering, SSI Group said that on Nov. 13, Credit Suisse (Singapore) Ltd. and affiliate, Credit Suisse Securities (Philippines) Inc. tapped the overallotment option equivalent to 129.63 million shares in SSI. SSI recently debuted in the market at a price of P7.50 a share equivalent to about 20 times of how much the retailer is expected to earn per share in 2015. The retailer has pitched to investors a rare business model that combines a mix of high- and mid-priced lifestyle brands under its retailing portfolio, differentiating itself from other retailers in the region. SSI previously secured “cornerstone” commitments for 34 percent of the offer shares from institutional investors such as 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. SSI has seen its store network grow to 690 stores covering more than 122,000 square meters as of end-September. The group expects to end this year with 740 to 750 stores. Doris C. Dumlao