MANILA, Philippines - The Philippine Stock Exchange has approved the listing application of Filipino-Chinese businessman Lucio Co’s supermarket chain Puregold Price Club, paving the way for its planned P10.8-billion initial public offering (IPO).
Puregold, which operates 72 grocery stores across the country, plans to sell up to 500 million new shares and 100 million shares held by majority shareholders at up to P18 each, 14 percent higher than originally planned. The offer accounts for 34.5 percent of the company’s issued and outstanding capital stock after the IPO.
In case of strong demand, the company has an option to sell another 90 million shares. Including this over-allotment option, Puregold would raise a total of P12.42 billion.
The final offer price will be determined on Sept. 21 with the domestic offering expected to kick off on Sept. 23 and run until Sept. 29. The shares will begin trading on the exchange on Oct. 5.
Hongkong and Shanghai Banking Corp. Ltd. and UBS AG were tapped as international lead managers for the issue while BDO Capital & Investment Corp. and First Metro Investment Corp. will serve as the domestic lead underwriters.
Evercore Partners, on the other hand, is Puregold’s financial adviser.
Of the estimated maximum proceeds, Puregold is expected to receive P9 billion while the selling shareholders will get P1.8 billion.
Puregold intends to use proceeds from the offering to fund new store openings and settle loan obligations to China Banking Corp., Metropolitan Bank & Trust Co. and Banco De Oro.
Up to 420 million shares will be offered overseas while the remaining 180 million shares will be sold to domestic investors.
Puregold would have a market capitalization of P36 billion once listed on the exchange.
Puregold is the country’s second largest retailer among hypermarkets and supermarkets. From only one store in 1998, it has grown to 72 in 20 cities and 22 municipalities throughout Metro Manila and the main island of Luzon as of July 22, 2011.
In the six months ending June this year, the company posted a net income of P782.8 million, up 269 percent from P782.8 million a year earlier. Net sales likewise grew 41 percent to P17.3 billion.
P105-M IPO of Jolliville unit OK’d
The Philippine Stock Exchange has cleared the planned initial public offering (IPO) of water distributor Calapan Ventures Inc., a wholly-owned subsidiary of publicly-listed Jolliville Holdings.
Calapan Ventures is offering 42.16 million common shares at a price range of P2 to P2.50 each to raise up to P105.42 million.
Proceeds from the offering will be mainly used for the expansion of its storage facilities, particularly for the construction of one overhead reservoir and the installation of transmission and distribution lines from the reservoir to the water system. A portion of the proceeds will also be used to fund zoning works in 26 barangays such as installation of district meters and isolation valves.
Based on its filing with securities regulators, the bookbuilding program will start on Sept. 8 while the offer price will be finalized on Oct. 25. The IPO will run from Nov. 14 to 18, with the listing of the shares scheduled on Nov. 24.
Calapan Ventures owns 100 percent of Calapan Water Works Corp., the owner and operator of the water system of Calapan in Oriental Mindoro and the water distribution system in Tabuk in Kalinga province.
Parent firm Jolliville was originally incorporated by the Ting family in September 1986 as Jolliville Realty and Development Co. Inc. On April 15, 1999, the Securities and Exchange Commission approved the change in the company’s name to Jolliville Holdings Corp., as well as the change in its primary purpose to that of a holding company.
Following its transformation into a holding company, Jolliville acquired the entire capital stock of its affiliates, namely, Jolliville Group Management Inc., Jollideal Marketing Corp., Ormina Realty and Development Corp., Jolliville Leisure and Resort Corp. and Ormin Holdings Corp.
Jolliville and its subsidiaries have principal business interests in leasing, management services, property development and land banking, and a local waterworks system. It also owns a number of properties in Metro Manila, Calapan City and Puerto Galera in Oriental Mindoro. These property investments, which include parcels of urban land, provincial and beachfront properties, as well as condominium units, are held for future operations and/or development.