Soon-to-be-listed SSI Group Inc. is allotting a part of its P7.45 billion initial public offering (IPO) for local small investors (LSI) to give them a chance to invest in the company. The luxury retailer plans to list in the stock exchange on November 7.
In a notice posted at the Philippine Stock Exchange website, SSI said that it will set aside 86.4 million shares for small investors from a total of 993.9 million offer shares that include the overallotment option.
The company said each LSI may subscribe to not more than 3,300 Shares in accordance with the board lot table.
“Based on the offer price of P7.50 per share, the maximum total subscription for each LSI applicant is 3,300 shares. The minimum subscription is 500 shares, and thereafter, in multiples of 100 shares,” SSI said.
In case of strong demand from LSIs, the company said the joint global coordinators and bookrunners may allocate shares at their discretion.
The sole lead manager and underwriter for the LSI allotment is BPI Capital Corp. Acceptance period for applications is from October 27 to 31.
SSI conducted a roadshow to market the IPO shares in Singapore, Hong Kong and London from October 15 to 22. The offering period was set from October 27 to 31.
The P7.45 billion IPO will consist of 993.9 million shares priced P7.50 apiece. The shares will come from the company’s 864.2 million primary shares (80 percent) and 129.6 million secondary shares (20 percent) for the overallotment option.
SSI has also brought in cornerstone investors, securing investments of up to 34 percent of the total shares offering.
The cornerstone investors are the Bank of the Philippine Islands Asset Management and Trust Group, Government Service Insurance System, Havenport Asset Management Pte. Ltd., Macquarie Asia New Stars Fund, MLIS – York Asian Event-Driven Ucits Fund, and York Asian Opportunities Investment Master Fund.
Established in 1987, SSI first operated Rustan’s Group’s specialty retail brands. Since 1999 after the Lacoste, Salvatore Ferragamo and Marks and Spencer, the company rapidly grew and added other brands to its portfolio — Ralph Lauren, DKNY, Kenneth Cole, Burberry and Banana Republic among others — and then branched out to convenience and department stores businesses through joint ventures with Ayala Land Inc. and Japan’s FamilyMart Co. Ltd. and Itochu Corp. to bring in FamilyMart and Wellworth chains in the country.
As of end-June, the company is operating 103 international brands through more than 600 stores located across the country. Kristyn Nika M. Lazo
Soon-to-be-listed high-end fashion retailer SSI Group Inc. has reduced the price of its initial public offering (IPO) to P7 to P7.50 per share from the initially-set P12 per stock.
Marti Atienza, vice president of SSI Group’s Investor Relations Department, said in a briefing late Wednesday that the indicative stock price range of the IPO at P7 to P7.50 is according to consultations with underwrites and big investors.
“Following consultations with our underwriters and discussions with large institutional investors, we believe [the P7 to P7.50 offer price]is reasonable and in line with valuations for comparable companies,” Atienza said.
“If the greenshoe option is exercised, we could raise P7.45 billion equivalent to 30 percent public float. If it’s not exercised, then maybe around 20 percent,” she added.
A roadshow to market the shares will be done in Singapore, Hong Kong and London from October
15 to 22. Soon after, the shares will be offered on October 27 to 31. The company targets to list in the stock exchange on November 7.