MRSGI listing ceremony on the PSE
SHARES of Visayan retailing giant Metro Retail Stores Group Inc. (MRSGI) firmed up on the company’s stock market debut on Tuesday, riding on the country’s strong consumer spending and favorable demographics.
Armed with fresh capital for expansion, MRSGI plans to open 50 to 70 new stores to double its nationwide retailing footprint in the next five to seven years. At present, the group has around 400,000 square meters of gross floor area (GFA) across its 46 stores, making it the largest retailer in Visayas and the fourth largest nationwide.
The day’s most actively traded stock at the stock market, shares of MRSGI gained by 0.25 percent to close at P4 on its listing day, paring intra-day gains from an intra-day high of P4.49 per share (+12.5 percent) amid the overall market downturn. Market capitalization stood at P13.68 billion at end of trading.
About P781 million worth of MRSGI changed hands on the company’s first day of trading on the PSE.
“The inspiring story of a family business turning into a big retail store operator, and now a publicly-listed company is an aspiration for many family-owned enterprises. The PSE is hopeful that many will follow the path taken by Metro Retail Stores Group, Inc. in deciding to open their company to a wider investor base,” PSE chair Jose Pardo said in his welcome remarks during the listing ceremony on Tuesday.
MRSGI had sold shares to the public at P3.99 per share, close to 15 times the kind of money Metro Retail is expected to make in 2016.
In terms of geographical area, MRSGI expects a more aggressive store expansion in the Visayas, where growth in retailing business is seen faster than Luzon while in terms of format, the focus will be on hypermarkets, MRSGI vice president for business development Joseph Conrad Balatbat said in a press briefing after the company’s listing on the local stock exchange.
To date, more than 50 percent of MRSGI’s revenues are generated outside Luzon, given that the group has 26 stores in the Visayas and only 20 in Luzon. It plans to set up shop in new places like Samar, Leyte, Iloilo and Bacolod and enter the Mindanao market by 2017 or 2018.
Balatbat added that the group was also open to opportunities to expand via mergers and acquisitions on top of organic expansion.
The company has been planning to expand its store network by five to 10 new stores each year, sustaining the pace of expansion seen since 2010.
MRSGI president Arthur Emmanuel, head of corporate communications Anna Periquet, chair Frank Gaisano