August 11, 2015 / 3:44 AM / 3 years ago

Philippine supermarket chain Metro Retail files for $135 mln IPO

MANILA, Aug 11 (Reuters) - Supermarket and department store chain Metro Retail Stores Group Inc is seeking to raise up to 6.17 billion pesos ($134.92 million) in the Philippine’s second-largest initial public offering (IPO) of the year.

Only two firms have debuted on the Philippine Stock Exchange this year, raising just 1.77 billion pesos combined. The largest IPO of 2015 is set to be property developer D.M. Wenceslao and Associates Inc at 21.72 billion pesos.

Metro Retail filed a prospectus with the Securities and Exchange Commission to sell up to 1.01 billion shares, including 92 million shares to cater for extra demand, at 6.10 pesos each. The price will be finalised on Oct. 28 ahead of Nov. 12 listing.

“We intend to use the majority of the net proceeds from the firm offer to fund capital expenditures in connection with the establishment of new stores,” Metro Retail, owned by the Gaisano family, said in the prospectus filed late on Monday.

The firm also plans to create a logistics and distribution centre in the central province of Cebu where the Gaisano family’s retail operations started in 1949.

Metro Retail operates 16 retail outlets nationwide following expansion and partnerships with property developers including Ayala Land Inc. It booked 28.54 billion pesos in revenue and 628.9 million pesos in net profit last year.

The firm hired BPI Capital and Deutsche Bank as joint global coordinators and lead underwriters of the IPO. ($1 = 45.7300 Philippine pesos) (Reporting by Neil Jerome Morales; Editing by Christopher Cushing)

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