SSI shares up in debut

MANILA, Philippines - Tantoco-owned SSI Group Inc. debuted at the Philippine Stock Exchange yesterday, ma-king the specialty retailer the fourth company to list in the local bourse this year.

SSI opened strong at P8.49 per share from initial public offering (IPO) price of P7.50 per share. The stock closed 6.53 percent higher at P7.99.

SSI raised a total P7.45 billion after selling 864.23 million primary and secondary shares, and an additional 129.63 million shares under the over-allotment option.

The shares were three times oversubscribed in the domestic market and seven times oversubscribed internationally, SSI president Anthony T. Huang said.

 “We were very surprised with the demand we received. We were fortunate that we met very strong demand from institutional investors locally and abroad,” Huang said.

SSI’s IPO received strong suport from institutional investors that include Bank of the Philippine Islands Asset Management and Trust Group, Government Service Insurance System, Havenport Asset Management Pte Ltd., Macquarie Asia New Stars Fund, MLIS-York Asian Event-Driven Ucits Fund, and York Asian Opportunities Investment Master Fund.

These cornerstone investors now own 9.6 percent of SSI.

SSI vice president Marti Atienza said 70 percent of the proceeds, or about P5 billion of the IPO would be going to the company while the remaining 30 percent would go to the company’s existing shareholders.

Atienza said P2.5 billion of the amount raised would be utilized to open more stores this year and next year while P1.5 billion would be used for debt repayment.

She said P400 million would be infused to Wellworth department store, a partnership with Ayala Land, and FamilyMart convenience store, a joint venture with Ayala and Itochu Corp. of Japan.

Some P300 million, meanwhile are being allocated for general corporate purposes.

SSI is the country’s leading specialty store retailer in the country, operating 103 international brands which includes Hermès, Prada, Gucci, Burberry, Salvatore Ferragamo, Lacoste, Michael Kors, Kate Spade, Gap, Old Navy, Zara, Stradivarius, Bershka, Aeropostale, Samsonite, Nine West, Payless Shoe Source, Beauty Bar, Marks and Spencer, Pottery Barn and TWG, among others.