CEBU, Philippines - The Philippine Stock Exchange approved on Wednesday the first ever share sale of Cebu-based Metro Retail Stores Group Inc. (MRSGI) as the company sets its initial public offering (IPO) in November this year.
In a notice it posted on its website, the PSE said that MRSGI, owned by the Gaisano family, is selling up to 920 million new shares and 92 million secondary shares with a maximum price of P6.10 per piece.
"The Exchange's approval of the initial public offering of the MRSGI's shares is subject to its compliance with all the post-approval requirements of the Exchange," the PSE said in the notice. "The Exchange will advise the investing public of developments on the initial public offering of the company."
After the IPO, the Gaisano-led retailer is set to have a market capitalization -- the value of shares -- of P21 billion and will have a public float of 26.71%. Public float represents the company's shares that are in the hands of public investors.
Metro Retail will use the trading symbol "MRSGI" once its shares are listed on the Main Board of the PSE on Nov. 24.
The offer period will start from Nov. 9 to 13. The final price-setting is scheduled on Nov. 5. Tentative listing date is on Nov. 24.
Metro Retail hired BPI Capital Corp. and Deutsche Bank AG as lead underwriters of the IPO.
The Gaisano-owned retailer is so far the third company to join PSE this year after SBS Philippines Corp. and Crown Asia Chemicals Corp.
The Securities and Exchange Commission (SEC) had earlier approved the IPO of the Cebu retail giant. The SEC approved Metro Retail's P6.17-billion maiden share sale.
The company is the largest department store and hypermarket operator and second largest supermarket operator in the Visayas.
Net proceeds of the initial offering will fund the company's capital expenditures for its store network expansion in the country.
The Gaisano family's retail operations started in the central province of Cebu way back in 1949.
Currently, Metro Retail has over 40 stores in department, hypermarket and supermarket formats all over the country -- about half of its store network is in Cebu. (FREEMAN)