Puregold ups capital to P3 B

MANILA, Philippines - The operator of S&R membership shopping stores is beefing up its capitalization to P3 billion, Puregold Price Club Inc. said in a filing with securities regulators.

Puregold said Kareila Management Corp.’s board of directors approved the “increase in authorized capital stock from P500 million to P3 billion consisting of 30 million shares with a par value of P100.

Kareila, a wholly-owned subsidiary of listed Puregold Price Club Inc., operates eight S&R stores nationwide.

Given the profitable performance of S&R, Kareila also declared a cash dividend of P475 million in favor of parent company Puregold.

The board also approved the declaration of stock dividends amounting to P622.5 million to cover the increase in capital stock.

To date, S&R stores are located in Bonifacio Global City, Aseana in Parañaque, Congressional Road in Quezon City, Alabang in Muntinlupa, Shaw Boulevard in Mandaluyong, San Fernando in Pampanga, Davao City and Cebu City.

In January to September, profits of Puregold surged by  46.5 percent to P2.64 billion on the back of new store openings and acquisitions.

The grocery chain is putting up a minimum of 25 new stores annually in the next five years to further expand its reach. Puregold has counted close to 500 cities and first class municipalities nationwide that it can tap for new stores.