PSE greenlights AllDay's P6 B IPO

Published September 30, 2021, 2:39 PM

by James A. Loyola

The Philippine Stock Exchange’s Board of Directors has approved the listing of the shares of AllDay Marts, Inc. at the bourse’s Main Board—paving the way for the retailer’s P6 billion initial public offering.

AllDay Marts, the operator of AllDay Supermarkets, will be offering up to 6.86 billion primary shares and up to 685.71 million over-allotment option shares at a price of up to P0.80 per share.

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The final offer price will be determined on October 12, 2021 after the company conducts its book building process. AllDay will have its offer period from October 18 to 25, 2021 with the listing date set for November 3.

“We are pleased that we will be welcoming AllDay Marts as an addition to our roster of listed firms and we are glad that it chose the equities market to raise capital for its financial requirements and expansion plans,” said PSE President and CEO Ramon S. Monzon.

PSE President Ramon S. Monzon

Proceeds from the IPO will be used by AllDay for debt repayment, and capital expenditures and initial working capital for its store network expansion.

The PSE said 10 percent of AllDay Marts’ firm offer shares will be reserved for local small investors (LSIs), who may subscribe to the IPO through the PSE EASy website (http://easy.pse.com.ph) or mobile application.

The approval of the IPO by the PSE and the Securities and Exchange Commission is seen by the company as a boost of confidence on its resilience despite the COVID-19 pandemic.

Villar Group Founder and Chairman Manuel B. Villar, Jr.

Business tycoon Manuel B. Villar, Jr. also regarded the approval as a strong indication of the stability of AllDay, one of the companies of the Villar Group.

“This brings us closer to our vision to bring to the investing public another pandemic resilient business that continues to rapidly grow amidst the COVID-19 pandemic,” said Villar, also the Chairman of AllDay.

Villar thanked the regulators for putting their badge of trust and confidence for AllDay, the fastest growing supermarket chain in the Philippines.

From incorporation in December 2016, the company has rolled out 33 stores as of June 2021. AllDay intends to reach a milestone of 45 stores by 2022 and 100 stores by 2026.

Alvin Arogo, Vice President and Head of Research of Philippine National Bank (PNB), is also optimistic about the latest developments.

“We just entered the ‘Ber’ months where the mood is typically upbeat as we head into the consumption-driven holiday season,” Arogo said.

The PNB Research Division expects the Philippine Stock Exchange index (PSEi) to finish at 7,490 to 8,100 this year on expectation that the relatively low yield environment will allow earnings multiples to remain elevated.

This suggests a potential upside of 8.0 percent to 16.8 percent from Wednesday’s close of 6,934.11.

“GDP growth starting the 2nd quarter of 2022 will encourage positive sentiment and investors are looking forward to less strict pandemic curbs overall,” Arogo added.

PNB Capital and Investment Corp. has been appointed as sole issue manager for the transaction. PNB Capital, BDO Capital and Investment Group and China Bank Capital Corp. were picked as joint underwriters and joint bookrunners.

 
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