RRHI prices P28-billion IPO at P58 per share

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The retail group of the Gokongwei family, Robinsons Retail Holdings Inc. (RRHI), has set the price of its initial public offering (IPO) at P58 a share for a total offer size of around P28 billion.

“Robinsons Retail priced its $650 million IPO at P58 a share with a market capitalization of P80.3 billion,” UBS Philippines Managing Director Lauro Baja said in a text message.

According to Baja, the share sale got a warm reception from the offshore investors, specifying that the international tranche of the offering was 4.5 times oversubscribed by world-class investors.

Out of the 135 investors, 58 percent came from Asia, 21 percent from Europe, and 21 percent, came from the United States.


“Long-term investors are 67 percent, while hedge and private banks are 33 percent,” Baja further specified.

The international roadshow of RRHI for its public offering started last week and ended on Thursday morning.

During the company’s IPO domestic investors’ briefing, Dennis Du, Maybank ATR Kim Eng Capital executive director, announced that the IPO price range for RRHI’s shares will be from P55 to P66 a share, lower than the previous maximum price range of P86.64 apiece.

Given the price range, RRHI will only raising about P26.7 billion to P32 billion from its IPO, down from the company’s previous target of P41.99 billion.

“When we first filed the price of P86, that was done in June. So those were preliminary estimates. When you file a filing price, you try to file at the highest possible price. The current price range already has the benefit of price discovery,” RRHI Chief Ctrategist Bach Johann Sebastian said, explaining that the new price range is comparable with other listed retail firms in the region.

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