AllDay Marts Inc., the operator of the Villar retail group’s AllDay Supermarkets, has set its final initial public offering price at P0.60 per share to raise up to P4.52 billion from its market debut.
The firm is offering 6.86 billion shares and up to 685.71 million over-allotment option shares which will be listed at the Philippine Stock Exchange’s Main Board. AllDay will have its offer period from Oct. 18 to 25, 2021 with the listing date set for Nov. 3, 2021.
Market sources said the institutional portion of the IPO was well received with oversubscription equivalent to 2.5 times the available shares.
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.
Business tycoon and AllDay Chairman Manuel B. Villar, Jr. said the IPO is part of “our vision to bring to the investing public another pandemic resilient business that continues to rapidly grow amidst the COVID-19 pandemic.”
Villar noted that AllDay is the fastest growing supermarket chain in the
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 second 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.