Gaisano may go public this year

MANILA, Philippines - The Cebu-based Metro Gaisano group is reviving plans to go public this year as it seeks to raise funds to expand its growing network, industry sources said.

This developed as the Securities and Exchange Commission (SEC) said “four to six” more companies may list at the local bourse this year, based on “inquiries” received by the commission.

Industry sources familiar with the matter said the planned initial public offering (IPO), which has been on the drawing board as early as 2011, may finally push through this year on the back of rosy economic prospects for the retail sector.

Barring any major political uncertainty this year, the source said the Gaisano group is looking at pushing through with the offer in the second half.

In May, Metro Retail chairman and chief executive officer Frank Gaisano was quoted as saying the stock market is attractive and consumer space is strong.

Owned by the Cebu-based Gaisano family, the Metro Gaisano chain of shopping malls has a network of 44 department stores and supermarkets in Visayas and Luzon.

In 2007, the group ventured into the investment banking business with the incorporation of Vicsal Investment Inc., whose main functions include underwriting securities for companies, brokering treasury notes and brokering equities. It also provides strategic advisory services for mergers, acquisitions and other types of financial transactions.

According to its website, Vicsal’s interests now include Wealth Development Bank, an established development bank based in Cebu with a network of 11 branches in the Visayas and Mindanao areas; Taft Property Venture and Development Corp., which is engaged in middle and high-end residential housing and subdivision development and commercial building projects which include the Taft Financial Center building at the Cebu Business Park; and Filipino Fund Inc., a publicly-listed closed end mutual fund company.