National Bookstore doubles capital to P1 billion

National Bookstore Inc., the country’s biggest book and supplies retailer, is doubling its capitalization to P1 billion to cover its stock dividend declaration.

Documents filed at the Securities and Exchange Commission show that out of the P500 million increase in capital stock, P250 million has been subscribed and paid, bringing to P750 million National Bookstore’s total subscribed capital.

As of end-2006, National Bookstore had assets of P3.04 billion against liabilities of P1.64 billion.

The company’s retained earnings of P390.51 million for 2006 is sufficient to cover the stock dividend declaration.

National Bookstore is considering setting up shop in Biejing and Shenzhen in China, Guam, Jakarta and Kuala Lumpur as part of its strategy to further expand reach.

The company’s first branch overseas is located in Hong Kong with a leasable space of 950,000 square meters.

Hong Kong serves as a springboard for the group’s planned expansion in Asia, with particular emphasis on China given its huge population.

National Bookstore intends to increase its branch network to 100 next year from more than 90 at present under its three major bookstore brands – National Bookstore, Powerbooks and the convenience store-type NBS Express.

Funding for the company’s expansion would come from internally generated cash. 

Founded by couple Socorro Cancio-Ramos and the late Jose Ramos, the company began in the 1930s as a small stall on Escolta St. in Manila before World War II. The stall sold supplies, GI novels and textbooks. In the 1950s, the Ramos couple thought of producing a line of greeting cards and postcards with Philippine motifs.

Later, they acquired the Philippine franchise for Hallmark cards. It was also at this time that the couple began a publishing program with the help of international publishers such as McGraw-Hill.