Clan behind National Bookstore eyes backdoor listing

The Ramos family expects to firm up within a year plans for Vulcan Industrial and Mining Corp. to be the backdoor listing vehicle for its flagship National Bookstore businesses.

Adrian Ramos, executive vice president of Atlas Consolidated Mining & Development Corp., told reporters that while the family is studying the possibility of a backdoor listing for retailing businesses, it is also considering an initial public offering, allowing the family to take advantage of the strong appetite for consumer plays in the Philippines.

“It’s not impossible,” Ramos said, referring to an IPO. “Whatever is fastest and cheapest” would likely be the route taken by the family.

The family is now seriously taking a look at bringing its retailing interests public, Ramos said.

“I think there’s a clamor for consumer-driven companies, he said, citing the success of Puregold Price Club, which he described as “a pure retail play story.”

The Ramos family’s privately held National Bookstore (NBS), an iconic brand in the Philippines, has over 140 stores nationwide.

Also, the NBS Group operates two department stores under the “Crossings” brand, one in Edsa Shangri-La Mall and another at the National Bookstore hub on Quezon Avenue. The company also owns a publishing house (Anvil) on top of its investment portfolio.

The NBS Group recently acquired interest in Vulcan, which is planning to exit from the mining business. Vulcan is increasing its authorized capital stock to P4 billion from P600 million to accommodate the conversion of the NBS Group’s advances of about P500 million into equity.

The increase will also allow the NBS Group to subscribe to the capital increase for up to P2.9 billion.

Asked about the NBS Group’s prospects, Ramos said that “as incomes improve in the Philippines and as education requirements improve,” growth will become stronger.

While digitalization of content is a growing threat, its effects on NBS remains to be seen, Ramos said.

“Strategically we just need to replace whatever lost margins from other items,” he said.

Books account for a little over 25 percent of average inventory in every store while stationery accounts for up to 60 percent.

“We are a network of stores. We have over 140 stores, so we just need to find a way to maximize turnover in those stores in whatever category that best suits our brand,” Ramos said.