As my good friend Lynlyn said, we the former Robinson babies should be proud with the company we work or dealt with before which is now approved for a record IPO.
Yes before becoming a CPA I had a 6 month stint working as an accounting clerk in Robinsons Supermarket in their Libis office. I was gunning for my second attempt at that time for the CPA Licensure exam. My 6 month work experience at Robinsons where I learned things about how accounting work is will always be remembered.
And now to our surprise, the holding company of Robinsons Supermarket, Handyman, Ministop(Japanese franchise), RDS(Robinsons Department Store), South Star Drug, Toys R Us,and other retail formats is now approved for its IPO. To read a copy of the submitted Preliminary Prospectus of Robinsons Retail Holdings Inc. to SEC(Securities & Exchange Commission) click here.
A news article posted in BusinessWorld Online(www.bworldonline.com) details the how the proceeds of this record IPO would be use:
Robinsons Retail expects to raise P39.05 billion from the primary offer, of which most, or P33.6 billion, will be utilized for expansion.
“It (the company) intends to use majority of the net proceeds form the primary offer to partially fund capital expenditures in connection with the establishment of new stores and the remaining proceeds will be used to fund renovation of existing stores and repayment of all outstanding bank loans,” the prospectus states.
The said IPO would be considered a record due to the expected proceed of up to Php 42 Billion.
The value per share is quite high for ordinary investor like me I guess, the buyings will be
taken care, by big investors only and for retailers seems not. Do you have any suggestion/s for
people like me?
I am not sure. Yes even my friend says it is quite high. What we could do is to buy it when it goes down.
I’m not keen to their retail IPO, I read in papers that it’s 89 plus per share. With the current market sentiment, would you risk on Robinson Retail? CEB yes!
Yup it is kinda high so in case it goes down probable that is the time I will enter.
I have no experience yet in buying IPO. Can you please help me. Thanks
Hi Elmer,
Buying IPO is the same as buying any regular stocks in the stock market except that there is a special price and a minimum number of shares your broker will be offering. The same principles on picking stocks is practically the same. Also most brokers are allocated number of shares thus they have this forms to fill if you are really interested to buy IPO shares.
At times it is better to buy after the IPO because sometimes the offer price of the stock is so jacked up and waiting a few days or a couple of weeks will bring it down to normal price. At times also it is the reverse that a demand for such stock sends the price to the roof thus those who bought at IPO offer price will make lots of money if they are able to sell at at the high price.