Puregold completes P6.5-B equity placement

Grocery retailer Puregold Price Club Inc. on Thursday said it completed a secondary share placement of 250 million common shares at a price of P26 per share, raising P6.5 billion.

 

The placement was done through an overnight bookbuilt offering with the Co family as the selling shareholders, the company said in a statement to the Philippine Stock Exchange.

 

“The transaction results in an increased public free float from 23 percent to 32 percent, in line with the public float prior to the acquisition of Kareila Management Corporation (“Kareila”) that owns the S&R Membership chain,” Puregold said.

 

The transaction was launched with a base offer of 220 million shares, the company noted. “Due to overwhelming response from global institutional investors, the transaction was upsized to 250 million shares,” it said.

 

“The offering was multiple times oversubscribed,” Puregold added.

 

UBS Investment Bank was hired as sole global coordinator and bookrunner for the transaction.

 

Puregold is the second largest retailer among hypermarkets, supermarkets and cash & carries in the Philippines, according to Planet Retail. 

 

Under the Puregold brand name, the company also targets retail consumers and runs a program for small business owners who resell products in local neighborhood convenience or sari-sari stores

 

The company grew to 134 stores in 35 cities and 28 municipalities as of June 30, 2012, from a single store in 1998. — VS, GMA News