AllDay Marts Inc., the Villar Group’s supermarket chain, has filed its registration statement with the Securities and Exchange Commission for its planned initial public offering worth up to P6 billion.
Documents at the SEC show, the firm is planning to offer up to 6.86 billion common shares at a price of up to P0.80, with an overallotment option of up to 685.71 million shares.
Net proceeds from the offer will be used primarily by AllDay for debt repayment and capital expenditures, as well as for initial working capital for its store network expansion.
“We intend to retire our high-cost debt in the amount of P4.1 billion which were used primarily to fund our past and ongoing store network expansion,” the firm said.
It explained that, “We believe that pursuing this strategy will increase the overall shareholder value of the Company as this will decrease our financing cost by as much as P264.4 million per annum.” Any balance of the net proceeds will allow AllDay to partly fund its store network expansion.
As part of its store network expansion, the firm plan to have up to a total of 45 stores by 2022 and 100 stores by the end of 2026.
The new stores planned up to the end of year 2022 will be funded mostly from the net proceeds from the sale of primary shares.
Out of the P1.19 billion of the net proceeds intended for store network expansion, P710.9 million will be allotted for capital expenditures (i.e., building fit-out and equipment, furniture and fixtures) and 479.8 million will be allotted for initial working capital.
“As all of our stores are leased, we will not incur any expenses for construction. We do not have plans to acquire land,” AllDay added.
The company has engaged PNB Capital and Investment Corporation as the sole issue manager for the offer. BDO Capital & Investment Corporation and China Bank Capital Corporation, along with PNB Capital, will serve as joint lead underwriters and joint bookrunners.