AllDay’s P4.5-B IPO banks on its pandemic resiliency

Published October 14, 2021, 4:07 PM

by James A. Loyola

The P4.5 billion initial public offering of AllDay Marts, Inc. (AllDay), owner of the Villar Group’s AllDay Supermarket chain, is riding high on the strong demand for pandemic-resilient stocks in the country.

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“There is strong clamor from the public for investment opportunities in pandemic-resilient industries such as grocery retailing where AllDay is at the forefront – being the fastest growing supermarket operator,” said Gerry B. Valenciano, President and CEO of PNB Capital and Investment Corp., the sole issue manager for the offering.

AllDay’s sales from 2018 to 2020 jumped from P3 billion to P7.9 billion, translating to a compounded 61 percent annual growth rate (CAGR). Net profit grew almost fourfold to P220 million in 2020, a CAGR of 95 percent during the same period.

The rapid growth was also sustained in the first half of 2021 as the company recorded P4.5 billion in sales and P180 million in net profit.

AllDay has priced its initial public offering (IPO) at P0.60 per share.

“We wanted to price the IPO responsibly at an entry point that maximizes long-term value for our new institutional and retail investors,” said AllDay Chairman Manuel B. Villar, Jr.

He explained that, “We hope to attract long-term shareholders that share our vision in disrupting the competitive landscape and elevating the customer shopping experience of Filipino families in the long run.” Part of the proceeds from the IPO will be directly used by AllDay for the rollout of its new stores.

AllDay intends to reach a milestone of 100 stores by 2026

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by leveraging its synergistic relationship with the country’s leading homebuilder, VistaLand.

To date, AllDay has so far covered 25 out of the 147 cities and municipalities where VistaLand is present. From incorporation in December 2016, the company has rolled out 33 stores as of June 2021.

AllDay is harping on its modern grocery concept to sustain its rapid growth despite the pandemic. As a leading player in the mid-premium segment, AllDay provides an elevated, modern grocery shopping experience with its innovative solutions and dual-format business model.

The firm also operates the best-in-class e-commerce platform www.allday.com.ph as a complement to the in-store business model.

The platform covers the entire store network, utilizing the physical sites in 25 cities and municipalities across the Philippines as last-mile fulfillment centers. This extends the geographic reach and increases the sales volume of each brick-and-mortar.

The target offer period for the IPO will be from October 18 to 25. Target listing date is on November 3 under the ticker “ALLDY”.

Retail investors will be able to buy the IPO shares online via PSE Electronic Allocation System (PSE EASy) during the offer period. The minimum subscription will be P600 and a maximum of P300,000.

PNB Capital, along with BDO Capital & Investment Corporation and China Bank Capital Corporation are the offer’s Joint Lead Underwriters and Joint Bookrunners.

 
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