Super Metro in Colon is among the 11 hypermarkets owned and operated by Metro Retail Stores Group, Inc. More hypermarkets are in the pipeline.
The Gaisano-led Metro Retail Stores Group, Inc. plans to open at least seven new stores in the Visayas by the end of next year, establish a logistics hub and acquire more existing retail stores using the proceeds from its initial public offering (IPO).
The planned Metro offering next month, which has been approved by the Securities and Exchange Commission (SEC), will raise around P6.2 billion.
Based on documents from the SEC, Metro Retail was authorized to sell up to 920 million primary common shares at a maximum price of P6.10 per share.
There will also be an overallotment option of up to P92 million common shares from selling shareholders Valueshop Stores, Inc. and Vicsal Development Corporation.
About P3.75 billion of the proceeds from the primary offering will be used to fund capital expenditures for the establishment of new stores. The remainder will be used to establish a consolidated logistics and distribution center in Cebu as well as for working capital requirements.
Mandated as joint global coordinators and lead underwriters are BPI Capital Corp. and Deutsche Bank AG Hong Kong branch.
NEW STORES
In a prospectus submitted to SEC, Metro Retail said it planned to open at least seven new stores in the Visayas next year, including one in Bacolod City in Negros and another in Iloilo City in Panay.
The Metro department store and supermarket in Bacolod will be part of a mixed-use development by Ayala Land while the department store and supermarket in Iloilo will open near the old Iloilo airport under an arrangement with Megaworld.
The company also said it has identified 30 sites for expansion across the country in the next three years. On top of this, the company is eyeing to acquire existing retail stores and consolidate these under the Metro brand name.
Metro Retail, which started as a family business with one store in Cebu in 1982, operates in three retail formats: department store under the brand Metro Department Store; supermarket under the brands Metro Supermarket and Metro Fresh N Easy; and hypermarket through the brand Super Metro.
Metro Fresh N Easy is the new brand of the Tita Gwapa stores that Metro Retail acquired in 2011.
As of June 30 this year, the company operates a total of 45 stores, with a combined selling space of nearly 200,000 square meters.
There are 26 Metro stores in the Visayas, nine in Metro Manila and 10 in other parts of Luzon.
Metro Retail is part of the Vicsal Group, which is also engaged in mixed-use and residential projects.