Per Arra B. France, news reporter
The PUREGOLD Price Club, Inc. raised P4.69 billion through top-up stock placement to fund its capital expenditures and potential acquisitions for the year.
In a stock market announcement on Thursday, the listed grocery operator said it held a stock sale consisting of about 104 million common shares on the P45 each. This comprises about 3.8% of the total outstanding and outstanding shares of the company.
The supplemental placement price represents a 6.8% discount on the Puregold share price of P48.30 on January 16.
Puregold's chairman, Lucio L. Co, was the sole selling shareholder of the deal, which was done through an overnight book offer. The transaction was carried out after the approval of its board of directors.
The company hired Deutsche Bank AG as the placement agent for the transaction.
Looking for details, Puregold's vice president of investor relations John Marson T. Hao said the placement was made by several investors.
"Resources will be used for general corporate purposes, capital expenditures and potential acquisitions," the company said.
Hao said the company has not yet finalized its investment budget for this year.
Puregold announced last year that it will incorporate a new unit that will handle its shipping business, PurePadala, Inc. The unit is intended to operate a money-transfer business for the benefit of buyers at Puregold stores.
Under PurePadala, OFWs can specify how much of the amount shipped will be used for purchases at any Puregold store, how much can be for the payment of utility bills, and how much can be charged.
Puregold increased its net income attributable to the parent company by 18% to P4.62 billion in the first nine months of 2018, driven by a 14% increase in gross revenue to P102.64 billion. Sales of the system also increased by 14% to P99.82 billion over the same period.
The company attributed its positive performance during the nine-month period to the approval of the tax reform program, which increased the payment at home and actually increased consumption expenses.
The same store sales growth, in turn, was 5.8% for Puregold stores and 8.8% for S & R stores.
Incorporated in 1998, Puregold's main business is trading in commodities, particularly consumer products such as canned goods, household goods, personal care products, dry goods, food products, pharmaceuticals and medical supplies on a wholesale and retail basis.
Shares of Puregold fell 4.97% or P2.40, closing at P45.90 each on the stock exchange on Thursday.