MerryMart Consumer Corp. is pushing through with a planned P1.6-billion initial public offering after obtaining the approval of the Securities and Exchange Commission.
The SEC on Tuesday approved MerryMart’s public offering of 1.59 billion in primary common shares at a price of up to P1 apiece. The shares will be listed and traded on the main board of the Philippine Stock Exchange.
The company plans to use net proceeds of P220.1 million from the offering to fund capital expenditures and initial working capital for store network expansion, investments in distribution centers and general corporate purposes
MerryMart plans to build up its network to 1,200 by 2030 from just seven stores today.
The company plans to open its 100th store by the end of 2021 and increase the network to 600 outlets by 2025 before reaching 1,200 by 2030.
PNB Capital and Investment Corp. will serve as the sole issue manager, lead underwriter and sole book-runner.
PNB president Gerry Valenciano said in an interview the MerryMart IPO remained on track this month despite current volatile market conditions.
The target offering period is on March 23 to March 27 this year while the listing date is tentatively set on April 2 this year.
MerryMart plans to put up company-owned stores as well as opening the network for franchising to the public after hitting its target of 1,200 stores,
“We would like to take advantage of our group’s knowhow in franchising, and our familiarity of the Philippine market terrain, just like in the rollout of Mang Inasal, CityMall, Hotel 101 and CentralHub network. We believe this step will further strengthen the market grip of all the industries that our group is involved in,” MerryMart chairman Edgar Injap Sia II in a statement said.
“Our family initially had no plans to expand the retail business, but our recent experiences made us realize the need for us to be in the modern retail business, and we believe we will be in it while the transition from traditional retail to modern retail is still ongoing,” he said. Jenniffer B. Austria
“Moreover there are undeniable synergies between the real estate and retail businesses. I will be glad to see both DoubleDragon and MerryMart to soon grow hand in hand and become formidable companies that will significantly contribute in building our Nation,” he added.
MerryMart currently operates three grocery retail formats: MerryMart Grocery, a full-size supermarket; MerryMart Market, a medium-sized specialized grocery; and MerryMart Store, a small-sized household essentials store.