VILLAR-LED AllDay Marts, Inc. has filed a registration statement with the Securities and Exchange Commission (SEC) for its P6-billion initial public offering (IPO).
It will offer up to 6,857,143,000 common shares to the public for P0.80 each, with an overallotment option of up to 685,714,000 shares.
AllDay plans to use majority of net proceeds from the offer to repay debt worth P4.10 billion, which it incurred to fund past and ongoing store network expansion. The balance will be used for capital expenditures and to partly fund another wave of store expansions.
The supermarket operator has grown its network to 33 physical stores since its incorporation in December 2016. It now has a net selling space of 55,881 square meters in 25 cities and municipalities across the country.
It aims to expand its store network to 45 by next year, which will be “funded mostly from the net proceeds from the sale of primary share.”
“We intend to continue the expansion of our store network in cities and municipalities where we are currently located, as well as other Tier-1 cities across the Philippines and leverage on our competitive strengths as we identify and open stores in new sites that we see ripe for expansion,” AllDay said in its preliminary prospectus.
AllDay is targeting to have a store network of 100 by the end of 2026.
“As all of our stores are leased, we will not incur any expenses for construction. We do not have plans to acquire land,” the company said.
According to its preliminary prospectus, the company is aiming to list its shares on the main board of the Philippine Stock Exchange by Nov. 3 with ticker symbol “ALLDY.”
Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said the IPO might face “lackluster” demand.
“With the current uncertainties surrounding the containment of the pandemic virus, [the] market may continue to be bearish on AllDay’s IPO as manifested by the value traded of the daily transactions indicative of investors on the sidelines,” Mr. Pangan said in a text message.
On Wednesday, value turnover at the stock exchange inched down to P6.18 billion with 1.14 billion shares traded, down from the P6.76 billion with 1.20 billion issues seen the previous trading day.
However, the timing is seen as a good opportunity for the company to help “stimulate the economy in the process.”
“This is one of the better times to raise capital while the cost of funding/financing is relatively lower and other costs of investments such as property prices and lease rates are relatively lower, so attractive for expansion/new investments to position for better times ahead,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a separate text message.
The company assigned PNB Capital and Investment Corp. as the sole issue manager for the transaction, while it will be joined by BDO Capital & Investment Corp. and China Bank Capital Corp. as joint lead underwriters and joint bookrunners.
AllDay forms part of the Villar group of companies, alongside Vista Land and Lifescape, Inc., AllHome Corp., and Golden MV Holdings. It is also a subsidiary of AllValue Holdings Corp. — Keren Concepcion G. Valmonte