National Bookstore to open 15 new outlets

MANILA, Philippines - The Ramos family is adding 10 to 15 new National Bookstore stores to its 165-branch network within the year as the book and office supply retailer prepares for listing in the local bourse.

Around 60 percent of National Bookstore’s business volume is made up of stationery and office supplies.

“A big chunk of National Bookstore’s business is office supply which is a consumer driven business, and I think with the growth in the Philippine economy it’s a great business,” said Adrian Ramos, Atlas Consolidated Mining and Development Corporation  director and executive vice president.

“With the good branding, National Bookstore is still known as the preeminent source of school and office supplies. Although the book business may plateau or decrease a little, we are confident that the bulk of the business will grow with the Philippine economy,” he added.

The new stores would be scattered nationwide, with some to be installed in SM Malls. Ramos said the company would change the mix of products offered in the new stores to suit the locations.

To open next month is a 450-square meter outlet in SM Aura in Bonifacio Global City.

NBS currently has a branch in Hong Kong which which opened five years ago.  Ramos said, however, the company is prioritizing expansion in the Philippines.

“Hong Kong is a test market,” he said, noting that overhead cost is higher in Hong Kong because of the steep rent.

National Book Store Inc. (NBS), the country’s largest bookstore chain owned by the Ramos family, is entering the local stock exchange through backdoor listing.

In an earlier disclosure, Vulcan Industrial & Mining Corp, also owned by the Ramos family, said its directors approved measures that would allow NBS to enter the local bourse.

Vulcan is changing its primary purpose from mining to retail, with its secondary purposes to include wholesaling, publishing, printing, manufacturing, distribution and contracting.

NBS is converting advances amounting to P363.94 million into shares in the listed firm while infusing P3.03 billion through a share purchase.

The board also approved the increase in the authorized capital of Vulcan to P4 billion from P600 million. Its corporate name would be changed to National Book Store Retail Corp. pending the approval of the Securities and Exchange Commission.

The reorganization subject to approval by the regulator and the shareholders of Vulcan.

Ramos said both Vulcan and NBS are evaluating options before it proceed with the initial public offering.

“What we want to do is get the approvals in place so that we can take a more considered look at what we’re going to do next. We’re still studying how we’re going to do it,” he said.

He said that on Vulcan’s end, two thirds of its shareholders have to approve use of the company as a listing vehicle for NBS.

The Ramos family currently holds a 15 percent stake in Vulcan.