Philippine grocery MerryMart to raise US$31 million in IPO
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Philippines grocery operator MerryMart has filed to raise up to PHP1.6 billion (US$31 million) in its forthcoming IPO.
The firm is seeking the funds to finance its nationwide expansion program, according to DealStreetAsia. It expects to operate 1200 stores within the territory following its expansion drive, including potential franchises, in an attempt to reach its target revenue of PHP120 billion ($2.36 billion). It will also establish a network of warehouses and distribution centers.
The firm intends to sell 1.6 million shares – about 21 percent of its total holdings – at PHP1 (2c) per share. PNB Capital and Investment will serve as lead underwriter, issue manager, and book-runner for the offering.
“Our family initially had no plans to expand the retail business,” said company owner Edgar Sia, “but our recent experiences made us realize the need for us to be in the modern retail business, and we believe we will be in it while the transition from traditional retail to modern retail is still ongoing.”
Questions & Answers
Q.What is MerryMart's main reason for undertaking this IPO?
What is MerryMart's main reason for undertaking this IPO?
MerryMart is raising funds primarily to finance its nationwide expansion program within the Philippines. This includes increasing its store count and establishing a network of warehouses and distribution centres across the territory.
Q.How many stores does MerryMart aim to operate after its expansion?
How many stores does MerryMart aim to operate after its expansion?
Following its expansion drive, MerryMart expects to operate 1,200 stores within the Philippines. This figure includes potential franchises as part of its strategy to grow its retail presence.
Q.Who is managing the IPO for MerryMart?
Who is managing the IPO for MerryMart?
PNB Capital and Investment has been appointed to manage the IPO process for MerryMart. They will serve multiple roles, including lead underwriter, issue manager, and book-runner for the offering.
Q.What is the targeted revenue MerryMart hopes to achieve?
What is the targeted revenue MerryMart hopes to achieve?
MerryMart has set a target revenue of PHP120 billion, which is equivalent to US$2.36 billion. This goal is linked to its ambitious expansion plans and increased store count.
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