Metro Manila (CNN Philippines, January 27) — Businessman Edgar “Injap” Sia II is taking his new grocery store chain MerryMart public this year, the Securities and Exchange Commission announced Monday.
The SEC released the registration papers of MerryMart Consumer Corp. (MM), a retail chain owned by Sia, who is behind brands like Mang Inasal and property developer DoubleDragon.
Sia, 48, is the 28th richest in the Philippines with a net worth of $400 million, according to Forbes.
MerryMart said it will offer up to 1.59 million shares in the company at ₱1 apiece by March, which will lead to net proceeds worth ₱1.47 billion.
“MM intends to use the net proceeds from the offer primarily for capital expenditures and initial working capital… to fund store expansion and acquisition, to least further distribution centers, and for general corporate purposes,” the company said.
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.
The MerryMart Group runs four branches nationwide, but targets to open 15 new outlets by April 30 this year. In 2019, it earned ₱28 million as net income.
“The 2030 Vision of the MM Group is to have 200 MerryMart Groceries and Markets and 1,000 MerryMart Stores in operation nationwide,” the company prospectus read.
Some ₱1.03 billion of the fresh funding will be used for capital expenses to expand MerryMart’s network, the company said. In 10 years, the group said it wants system-wide sales worth ₱120 billion from its 1,200 branches.
The shares will be listed on the main board of the Philippine Stock Exchange by April 2, according to the company’s proposed timetable.
PNB Capital and Investment Corporation has been tapped as sole issue manager, lead underwriter, and sole bookrunner of the fund-raising exercise.
MerryMart’s planned listing would be the first in 2020, and follow four successive public offerings late last year.
