Metro Manila (CNN Philippines, March 11) — Businessman Edgar “Injap” Sia II’s MerryMart retail chain could be the first to go public this year after the Securities and Exchange Commission approved its ₱1.6-billion public offering.
The corporate regulator announced Wednesday that it has given the go signal for the convenience store and supermarket brand to list on the Philippine Stock Exchange (PSE) for 7.6 billion common shares, 1.6 billion of which will be offered to public investors at ₱1 each.
The planned listing would be the first in 2020, and would follow four successive public offerings late last year.
Of the amount, MerryMart said it will receive ₱1.47 billion which it will use to fund new stores, as well as for working capital for distribution centers.
MerryMart offers franchises for a full-size supermarket, a medium-scale market, and the MerryMart Store, which are smaller outlets selling a limited array of household essentials. It was previously known as Injap Supermart, Inc. after its founder, who is also behind fast food chain Mang Inasal and property firm DoubleDragon.
Sia is the 28th richest in the Philippines with a net worth of $400 million, according to Forbes.
The company is looking to join the main bourse by April 2, according to its proposed initial public offering submitted to the SEC in January. In 10 years, the group said it wants system-wide sales worth ₱120 billion from its 1,200 branches.
SEC said MerryMart is looking to add 12 new stores by June, while 100 branches are eyed by end-2021. The proceeds of the public offering will fund 10 MerryMart Groceries, one MerryMart Market, and 14 MerryMart stores.
PNB Capital and Investment Corporation has been tapped as sole issue manager, lead underwriter, and sole bookrunner of the fund-raising exercise.
More fundraising
SEC also approved the proposal of the Gotianun-led Filinvest Development Corporation to raise up to ₱15 billion through fixed-rate notes to be sold to investors.
The bonds will be sold at face value and will be due in five or seven years, the SEC said. The papers will be available with a minimum ₱50,000 investment, plus increments of ₱10,000.
The listed real estate firm said it will use the capital to pay maturing debts.
Meanwhile, Altus Property Ventures also got the regulator’s nod to hand out up to 100 million shares in the company as dividends to shareholders of its parent firm Robinsons Land Corporation, paving its way into the PSE’s small main board.
Local stocks took a nosedive on Monday as the number of novel coronavirus cases in the country spiked over the weekend. Shares have slightly recovered from its worst drop since 2008, but remained slumped compared to last week’s level.
