SSI Group sets lower IPO price range to P7.00-P7.50

Specialty brand retailer SSI Group Inc. lowered the maximum price for its initial public offering to P7.50 from P12.50 apiece.

The price range for the intended IPO is pegged between P7 to P7.50 apiece following consultations with underwriters and large institutional investors, SSI Group vice president for investor relations Marti Atienza told reporters in a briefing in Makati CIty.

"The P7.50 per share price is the appropriate max price that represents the discussions with large institutional investors and we feel that it is reflective of our potential and position as the number one specialty retail," she said.

"The P12.50 per share is the price used for filing for IPO with the SEC... the idea is always to put a max price," she noted.

SSI Group is selling 864.22 million shares and up to 129.63 million shares under an over allotment option.

With the new price range, the company will now reap between P7 billion to P7.5 billion.

The final offer price will be announced on October 22, the last day of the scheduled international roadshow starting October 15 in Hong Kong, London and Singapore, while the IPO will be from October 27 to 31.

Target date of listing is on November 7.

SSI Group president Anton Huang hopes to the market will normalize before the listing of the company as Philippine economic fundamentals remain robust.

"We've noticed that the markets have been quite active either way in the past few
days," he said.

"We're hoping things would stabilize in the next couple of weeks. Taking into account the fundamentals in the Philippines today, there's no reason for any downtrend," he added.

BPI Capital Corp., Credit Suisse (Singapore) Limited and Hongkong and Shanghai Banking Corporation Limited-Singapore Branch were tapped as joint global coordinators and bookrunners for the planned IPO.
 
Established in 1987, SSI is the main proponent of the Rustan’s Group’s specialty retail operations.
 
The SSI Group now includes Stores Specialists Inc. and retails 103 international brands including Prada, Gucci, Burberry, Salvatore Ferragamo, Michael Kors, Kate Spade, GAP, Old Navy, Zara, Stradivarius, Bershka, Aeropostale, Samsonite, Nine West, Payless Shoe Source, Beauty Bar, Marks & Spencer, Pottery Barn and TWG.
 
It is also partly operating FamilyMart convenience stores under a partnership deal with Ayala Land Inc. and Japan FamilyMart and Itochu Corporation of Japan.
 
The company recently opened its first Wellworth Department Store, a mid-market joint venture with Ayala Land. — BM, GMA News