Datem, Metro Retail Stores IPO plans okayed by SEC

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The Securities and Exchange Commission (SEC) on Friday approved two initial public offering (IPO) plans worth a combined P10.82 billion.

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In a special meeting, the corporate regulator greenlighted construction firm Datem, Inc. and Gaisano’s Metro Retail Stores Group, Inc.’s bids to raise P4.65 billion and P6.17 billion, respectively, by going public.

The IPO plans still have to be approved by the Philippine Stock Exchange (PSE). If accepted, the market debuts would be the third and fourth for this year.

The bourse has said that it was targeting nine to 10 IPOs for this year but PSE President Hans Sicat has revised this to five given market volatility.

Metro Retail
Gaisano family’s Metro Retail Stores Group Inc. is looking to raise up to P6.17 billion from the IPO, offering a total of 1.012 billion shares (920 million for the base offer and 92 million for oversubscription) at P6.10 each.

Final pricing has been scheduled for October 29 and the offer period will run from November 2 to 6. Listing at the PSE Main Board is expected on November 12.

Expected net proceeds of P5.285 billion — without the overallotment option — after offer and listing expenses and taxes will be used for expansion of the firm’s store network (P3.752 billion), construction of a logistics and distribution center (P1.215 billion) and working capital requirements (P317.2 million), mostly for 2016 up to 2017.

BPI Capital Corp. and Deutsche Bank AG have been appointed joint global coordinators.

Metro Retail is the operator of Gaisano stores, including Market! Market! in Bonifacio Global City. As of end-June, the company had 45 stores nationwide, including nine in Metro Manila, with a total net selling space of about 197,873 square meters.

Datem
Datem, Inc., meanwhile, wants to raise P4.65 billion to expand its activities in construction, housing and bulk water.

It wants to sell up to 329.046 million shares (286.127 million for the base offer and 42.919 million for oversubscription) at P14.15 per.

The offer period is scheduled to run from November 16 to 24, while listing at the PSE Main
Board is targeted by the end of November.

BPI Capital Corp. and First Metro Investment Corp. have been appointed joint issue coordinators, lead underwriters and bookrunners.

Datem has ongoing projects with big developers, including eight residential developments for Megaworld Corp., One Shangri-La Place for Shang Properties Inc., Twin Oaks Place for Greenfields Development Corp., Arya Residences for Arthaland Corp., Grand Hyatt Residences for Federal Land Inc., Axis Residences for Robinsons Land Corp., The Makati Place for Alphaland Corp. and Parksuites for Anchor Land Holdings Inc.

Other IPO hopefuls for this year, and the amounts they want to raise, include D.M. Wenceslao & Associates Inc. (P21.7 billion), restaurant chain operator Gweilo Corp. (P75 million), Green Power Panay Philippines Inc. (P290 million), property developer Italpinas Development Corp. (P242 million), brokerage firm Philstocks Financial Inc. (P185.89 million), Philippine Primark Properties Inc. (P1.2 billion) and BPO firm Pointwest Technologies Corp. (P2.09 billion).

Only two firms have listed so far this year: Crown Asia Chemicals and SBS Philippines Corp.

Arman Pan, SEC acting corporate secretary, said the final decision on whether or not to go public lay with the firms themselves.

“Approval [of IPO plans]is easy. It is just a question of whether firms will push their listings this year given the market volatility,” Pan said.

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