MerryMart’s P1.6-B IPO plan OK’d

MerryMart Consumer Corp., the first company to debut on the tumultuous local stock market this year. The SEC also approved a P15-billion bond offering planned by Gotianun-led Filinvest Development Corp. and the listing by way of introduction of Altus Property Ventures Inc., expected to be Robinsons Land Corp.’s vehicle for real estate investment trust offering.

MerryMart, led by young tycoon Edgar Sia II, obtained clearance to offer up to P1.59 billion worth of new common shares at a maximum of P1 each, bringing to public hands up to 21 percent of its post-IPO stocks. Despite the bearish stock market conditions, MerryMart plans to brave the capital market this March, subject to the approval of the Philippine Stock Exchange. Sia said he was still hoping to proceed with the original listing schedule of April 2 on the local bourse under the ticker MM.

With the relatively mo­­dest size of the offer and given MerryMart’s “hypergrowth” prospects, Sia suggested that the current risk aversion across emerging markets arising from the coronavirus epidemic would not change the company’s growth strategy.Under its 12-12-12 Vision 20130, MerryMart plans to roll out 1,200 branches nationwide, reach P120 billion in systemwide sales revenue and become one of the top three consumer companies in the country. IPO proceeds would likely be used to fund this expansion program, which also includes franchising, similar to how Sia had grown Mang Inasal and DoubleDra­gon Properties Corp.’s shopping mall arm, CityMall; hospitality arm, Hotel 101, and logistics arm, CentralHub network.As of end-February, MerryMart had seven operating branches and 13 more branches were under simultaneous construction. It expects to reach 100 branches by the fourth quarter of next year and 600 branches by 2025.

Its expansion program is seen to create more than 15,000 new jobs for the Filipino workforce in the near term and exceed 50,000 by 2030.

The SEC also approved the registration statement of FDC for fixed rate bonds worth P8 billion with an oversubscription option for P7 billion.

The bonds will be issued in minimum denominations of P50,000 each, and multiples of P10,000 thereafter.

Also approved was Altus Property Ventures’ plan to distribute up to 100 million common shares as property dividends to the stockholders of Robinsons Land Corp. and list by way of introduction, or without immediate IPO. —Doris Dumlao-Abadilla