SEC OKs MerryMart IPO, FDC debt float, Altus listing

SEC OKs MerryMart IPO, FDC debt float, Altus listing

Source: VG Cabuag

THE Securities and Exchange Commission (SEC) has approved the initial public offering (IPO) of MerryMart Consumer Corp. for a maximum of P1.6 billion, along with the bond offering of Filinvest Development Corp. (FDC) for as much as P15 billion and the listing of Altus Property Ventures Inc. by way of introduction.

In its March 10 meeting, the Commission En Banc approved the registration statement of MerryMart, led by DoubleDragon Properties Corp.’s Edgar  “Injap” J. Sia II, of 7.59 billion common shares.

The registration statement covers 1.59 billion of primary common shares to be offered and sold by way of initial public offering at a maximum price of P1 each.  It will be listed and traded on the main board of the Philippine Stock Exchange.

PNB Capital and Investment Corp. has been picked as the sole issue manager, lead underwriter and sole bookrunner.

MerryMart expects to raise P1.47 billion in net proceeds for capital expenditures and initial working capital for store network expansion  at P1.03 billion, investments in distribution centers at P220.9 million and general corporate purposes at P220.1 million.

MerryMart, formerly Injap Supermart Inc., is an emerging company that operates supermarket and household essentials categories.

It 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.

As part of its store network expansion, MerryMart  intends to open 12 additional stores by the second quarter of 2020. The company further aims to open its 100 branches by the fourth quarter of 2021.

Of the 100 stores, about 25 stores will be funded from the net proceeds of MerryMart’s initial public offering. These will include 10 full-sized grocery stores, one mid-sized  and 14 small ones.

Meanwhile, the SEC also approved the FDC’s offering of fixed-rate bonds, some P8 billion of which is its primary offer and P7 billion as its oversubscription option. The paper will be offered at face value.

The offer may comprise two series, five-year bonds due 2025 and seven-year bonds due 2027.

The bonds shall be issued in minimum denominations of P50,000 each, and in integral multiples of P10,000, thereafter. They will be listed and traded in denominations of P10,000 on the Philippine Dealing and Exchange Corp.

Filinvest expects to net some P14.8 billion, assuming full exercise of the oversubscription option. It will use the net proceeds primarily to refinance maturing debt obligations in 2020.

The company may redeem in whole the outstanding five-year bonds at 101 percent on the third anniversary of the issue date or at 100.5 percent on the fourth year.

The seven-year bonds, meanwhile, may be redeemed at 101.5 percent on the fourth year, at 101 percent on the fifth year, or at 100.5 percent on the sixth year.

BDO Capital and Investment Corp., BPI Capital Corp., China Bank Capital Corp., East West Banking Corp. and First Metro Investment Corp. were picked as joint lead underwriters and bookrunners for the offer.

On the other hand, the agency also approved the listing by way of introduction of Altus Property Ventures, to be listed at the small main board of the PSE. The company plans to distribute up to 100 million common shares of Altus Property as property dividends to the stockholders of Robinsons Land Corp.

The dividend shares, representing 100 percent of the issued and outstanding common shares of Altus Property Ventures, will have an initial listing price of P10.10 per share.

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Listing by Way of Introduction is done when the securities of an unlisted issuer are distributed by way of property dividend by a listed issuer to shareholders of that listed issuer.

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