The placement was conducted via an overnight bookbuilt offering wherein the Co family were the selling shareholders. The transaction results in an increased public free float from 23% to 32%, in line with the public float prior to the acquisition of Kareila Management Corporation ("Kareila”) that owns the S&R Membership chain.
The transaction was launched with a base offer of 220 million shares. Due to overwhelming response from global institutional investors, the transaction was upsized to 250 million shares. The offering was multiple times oversubscribed.
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 not only targets retail consumers, but is also the only Philippines retailer with a dedicated program for small business owners who resell products in local neighborhood convenience ("sari-sari”) stores, thus significantly broadening its customer base. Puregold was recognized as one of the top five brands in the Philippines in Retail Asia Magazine’s 2010 Retail Asia-Pacific Top 500 program.
Following the completion of the recent acquisition of Kareila, Puregold also operates S&R, the only warehouse membership club in the Philippines. S&R targets middle to upper class customers offering high quality international and local brands through its 6 stores in the Philippines. In addition, following the completion of the acquisition of Gant Group of Companies, Puregold also operates 19 supermarkets operating under the Parco brand name.
The Company has grown significantly since it commenced operations, expanding from 1 store in 1998 to 134 stores in 35 cities and 28 municipalities as of June 30, 2012.
UBS Investment Bank acted as Sole Global Coordinator and Bookrunner for the transaction.