The Securities and Exchange Commission (SEC) said it has approved MerryMart Consumer Corp.’s P1.59 billion initial public offering (IPO).
The SEC said MerryMart is good to go in its planned issuance consisting of 1.59 billion common shares at an offer price of P1 each.
PNB Capital and Investment Corp. will serve as the sole issue manager, lead underwriter and sole bookrunner.
MerryMart said of the proceeds, it will use P1 billion for capital expenditures and initial working capital for store network expansion, P220.9 million for investments in distribution centers, among others.
MerryMart, formerly Injap Supermart Inc., is an emerging consumer-focused retail company principally engaged in the operation of retail stores in the 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.
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 IPO.
These will include 10 MerryMart Groceries, one MerryMart Market and 14 MerryMart Stores.
The approval of MerryMart’s IPO plans comes at a time when the market is reeling from dampened investor interest which saw the Philippine Stock Exchange index (PSEi) hover around its early 2016 days.
Luis Limlingan, managing director at Regina Capital Development Corp., however said despite the rout the market is experiencing, MerryMart’s IPO may fly come bookbuilding time.
