SSI Group defers P12-B October market debut

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SSI Group Inc., the country’s largest high-end specialty retailer, will push back the timetable for its planned P12-billion initial public offering (IPO) originally slated in October pending completion of regulatory requirements.

SSI president Anton Huang told reporters on the sidelines of the FamilyMart Franchising event late Tuesday that the company is still in the process of seeking approval from the Securities and Exchange Commission for the IPO.

“We are going through the process (of seeking approval), and we’re unable to give an exact date for the IPO, but we’re hoping sooner rather than later. I don’t think we will make it in October at this stage, but we hope we can do it within the year,” Huang said.

SSI, through its unit Store Specialists Inc., operates 103 luxury retail brands including Hermes, Prada, Gucci, Burberry, Lacoste, Salvatore Ferragamo, Michael Kors, Kate Spade, Gap, Old Navy, Zara, Marks and Spencer, Bershka, Aeropostale, Samsonite, Stradivarius, Nine West, Payless Shoe Source, and Beauty Bar, among others.


Huang said the company is targeting to raise P12.42 billion from the maiden share sale, which will be used for the firm’s expansion plans such as bringing new brands to the Philippine market and opening 115 new high-end retail stores by next year.

The IPO’s joint global coordinators and bookrunners are: BPI Capital Corp., Credit Suisse (Singapore) Ltd., and the Singapore unit of The Hongkong and Shanghai Banking Corp. Ltd.

“Our plans will definitely remain on the Philippine market. We have both existing and new businesses that we wanted to build as part of our portfolio, taking into account the many real estate opportunities that are in the market. There’s a lot of expansion in store for us,” Huang said.

“We’re always on the lookout for new brand opportunities. This year alone, we have 15 brands added to our portfolio. We still have a few more that will come in by the end of the year,” he added.

Huang said SSI is “very much on track” in achieving the 115 new store openings by next year—not including FamilyMart’s store expansion—due to the “growth opportunities presented by the Philippine economy.”

He said FamilyMart—a joint venture with the Ayala Group, Japan’s FamilyMart and Itochu Corp.—is expected to reach 500 stores by 2018, 100 of which will be opened within this year on top of the 65 existing stores as of press time.

The 100 FamilyMart stores within the year are located in Metro Manila and Luzon. Huang said FamilyMart will expand its footprint outside Metro Manila and in the provinces by next year.

A joint venture with the Ayala Group also involves establishment and operation of Wellworth Department Stores catering to the mid range markets.

A second Wellworth store is set to open by the first quarter next year at the UP Town Center in Diliman, Quezon City. The first Wellworth department store recently opened in Fairview, also in Quezon City.

“We’re assessing other opportunities and other Ayala developments that will be presented to us in the near future [for Wellworth],” Huang said.

Asked if they plan to inject the group’s other businesses into SSI, Huang said it is not in the group’s plans as of the moment.

“No plans at the moment. The only thing that’s part of our plan is to do a public offering [for]the SSI Group, which likewise include our FamilyMart venture and Wellworth Department Stores, but the rest of the businesses in our group are managed separately,” he said.

Established in 1987, SSI first operated Rustan’s Group’s specialty retail brands. Since 1999 after retailing the Lacoste, Salvatore Ferragamo and Marks and Spencer brands, the company rapidly grew and added other retail brands into its portfolio—Ralph Lauren, DKNY, Kenneth Cole, Burberry and Banana Republic, among others—and then diversified into convenience and department stores through FamilyMart and Wellworth.

Kristyn Nika M. LazoSSI Group defers P12-B October market debut

SSI Group Inc., the country’s largest high-end specialty retailer, will push back the timetable for its planned P12-billion initial public offering (IPO) originally slated in October pending completion of regulatory requirements.

SSI president Anton Huang told reporters on the sidelines of the FamilyMart Franchising event late Tuesday that the company is still in the process of seeking approval from the Securities and Exchange Commission for the IPO.

“We are going through the process (of seeking approval), and we’re unable to give an exact date for the IPO, but we’re hoping sooner rather than later. I don’t think we will make it in October at this stage, but we hope we can do it within the year,” Huang said.

SSI, through its unit Store Specialists Inc., operates 103 luxury retail
brands including Hermes, Prada, Gucci, Burberry, Lacoste, Salvatore Ferragamo, Michael Kors, Kate Spade, Gap, Old Navy, Zara, Marks and Spencer, Bershka, Aeropostale, Samsonite, Stradivarius, Nine West, Payless Shoe Source, and Beauty Bar, among others.

Huang said the company is targeting to raise P12.42 billion from the maiden share sale, which will be used for the firm’s expansion plans such as bringing new brands to the Philippine market and opening 115 new high-end retail stores by next year.

The IPO’s joint global coordinators and bookrunners are: BPI Capital Corp., Credit Suisse (Singapore) Ltd., and the Singapore unit of The Hongkong and Shanghai Banking Corp. Ltd.

“Our plans will definitely remain on the Philippine market. We have both existing and new businesses that we wanted to build as part of our portfolio, taking into account the many real estate opportunities that are in the market. There’s a lot of expansion in store for us,” Huang said.

“We’re always on the lookout for new brand opportunities. This year alone, we have 15 brands added to our portfolio. We still have a few more that will come in by the end of the year,” he added.

Huang said SSI is “very much on track” in achieving the 115 new store openings by next year—not including FamilyMart’s store expansion—due to the “growth opportunities presented by the Philippine economy.”

He said FamilyMart—a joint venture with the Ayala Group, Japan’s FamilyMart and Itochu Corp.—is expected to reach 500 stores by 2018, 100 of which will be opened within this year on top of the 65 existing stores as of press time.

The 100 FamilyMart stores within the year are located in Metro Manila and Luzon. Huang said FamilyMart will expand its footprint outside Metro Manila and in the provinces by next year.

A joint venture with the Ayala Group also involves establishment and operation of Wellworth Department Stores catering to the mid range markets.

A second Wellworth store is set to open by the first quarter next year at the UP Town Center in Diliman, Quezon City. The first Wellworth department store recently opened in Fairview, also in Quezon City.

“We’re assessing other opportunities and other Ayala developments that will be presented to us in the near future [for Wellworth],” Huang said.

Asked if they plan to inject the group’s other businesses into SSI, Huang said it is not in the group’s plans as of the moment.

“No plans at the moment. The only thing that’s part of our plan is to do a public offering [for]the SSI Group, which likewise include our FamilyMart venture and Wellworth Department Stores, but the rest of the businesses in our group are managed separately,” he said.

Established in 1987, SSI first operated Rustan’s Group’s specialty retail brands. Since 1999 after retailing the Lacoste, Salvatore Ferragamo and Marks and Spencer brands, the company rapidly grew and added other retail brands into its portfolio—Ralph Lauren, DKNY, Kenneth Cole, Burberry and Banana Republic, among others—and then diversified into convenience and department stores through FamilyMart and Wellworth.

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