MANILA, Oct. 16 (PNA) — Specialty retailer SSI Group Inc., which is set to debut on the stock exchange next month, will embark on aggressive network expansion in the next two years, optimistic about consumer spending.
”We will strengthen market position through network expansion… We expect retail spending to be strong,” said company president Anthony Huang.
Huang said the retailer aims to use Php2.5 million of the Php4.79 billion net proceeds from the initial public offering (IPO) for new stores expansion.
”Our target is (to put up) 155 to 185 (stores) this year and 100 to 115 next year,” said Marti Atienza, Vice President-Investors Relations at the SSI Group.
Huang said the remaining net proceeds from the primary offer will be utilized to fund its “FamilyMart” convenience stores and “Wellworth” department store operations, repay existing debt and for general corporate purposes.
The company is developing, managing and operating convenience stores through the FamilyMart chain which is a joint venture with Ayala Land Inc. (ALI), Japan FamilyMart and Itochu Corp. of Japan.
It recently opened its first Wellworth Department Store, a mid-market Department Store, under a joint venture with ALI.
Apart from embarking on stores expansion, Huang said the retailer will continue to expand into high growth consumer segments with growing brand portfolio and expand its multi-format retail presence.
”We keep our eyes and ears open to opportunities,” he said.
The company, which includes Stores Specialists Inc. as part of its group, retails 103 international brands including Hermes, Prada, Gucci, Salvatorre Ferragamo, Lacoste, Michael Kors, among others.
The retailer intends to sell 864.2 million common shares at P7.50 a-piece in the IPO slated on November 7.
BPI Capital Corp., Credit Suisse (Singapore) Limited and the Hongkong and Shanghai Banking Corp. Limited, Singapore branch will be the joint global coordinators and bookrunners of the planned IPO. (PNA)