Puregold unit eyes capital hike to grow S&R warehouse clubs

A unit of Puregold Price Club Inc., which operates S&R Membership Shopping, wants an increase in authorized capital stock to grow and expand its retail supermarket until 2016.

 

Directors of Kareila Management Corp. approved an increase in authorized capital stock to P3 billion, equivalent to 30 million shares at par value of P100 per share, from P500 million or five million shares at P100 apiece, Puregold Price Club Inc. on Friday told the Philippine Stock Exchange.

 

Wholly-owned subsidiary Kareila Management operates S&R, a wholesale and retail supermarket chain which caters mostly to registered members.

 

"S&R continues to expand and the capital hike will finance the succeeding expansions," Puregold president Leonardo Dayao told GMA News Online.

 

"We programmed one new store opening a year until 2016, but depending on availability of location, we may open two a year," he added.

 

Puregold opened two S&R warehouse clubs in Mandaluyong City and Davao City this year, bringing eight the number of S&R stores stores.

 

In the same disclosure, Puregold said the Kareila board also approved a P475 million cash dividend and a stock dividend involving 6.25 million shares valued at P625 million.

 

In the first nine months, Puregold reported its net income grew 46.5 percent to P2.64 billion from P1.8 billion a year earlier on the back of acquisitions and expansion.  – VS, GMA News