MANILA, Philippines - Robinsons Retail Holdings Inc. (RRHI), the retail unit of the Gokongwei Group, made a dismal debut on the Philippine Stock Exchange yesterday, dropping as much as 7.6 percent, hurt by a weak overall market.
Positioned as a multi-format retail play, RRHI hit a low of P53.60 compared to an initial offer price of P58. The stock, however, gained some strength to close at P56.50 per share, still below its maiden offering price.
The PSE index sank 1.42 percent amid concerns that the devastation caused by most powerful storm to have ever hit the country, would put a dent in Southeast Asia’s fastest-growing economy.
RRHI, the country’s largest IPO, raised around $621 million from the public. At P58, RRHI was valued at a price-to-earnings multiple of 21 for 2014
“Negative sentiment is hanging over the market but we expect the share price to improve as the company expands and delivers on its promise,†Bach Johann Sebastian said in a briefing following RRHI’s listing ceremony.
Analysts also attributed the stock’s weak turnout to the damage brought about by typhoon Yolanda to the company’s supermarkets and department stores. RRHI has around 55 stores in the typhoon-hit Visayas region.
“We have unconfirmed reports that there is extensive damage but our first priority is really the safety and well-being of our 500 employees,†said Robina Gokongwei-Pe, president and general manager of RRHI.