Wilcon Depot going public in 2017, files P8-B IPO bid

Wilcon Depot Inc. is going public next year, as it turns 40 years old.

The home improvement and construction supplies retailer filed its application with the Securities and Exchange Commission (SEC) for an initial public offering (IPO) that could raise close to P8 billion.

The planned listing date is on March 2017, according to a statement it issued Tuesday.

The listing comes as the government recently announced a 7.1-percent expansion in gross domestic product (GDP) for the first three months of the Duterte administration ending September 2016.

Construction was a big beneficiary as the administration also planned to spend about P8 trillion over the next six years. That will benefit construction retailers, including Wilcon.

“There is going to be a lot of spending, it won’t just be on the government’s side but on the private sector as well,” BDO Unibank chief strategist Jonathan Ravelas said in an interview Tuesday.

The government’s efforts to spread out investments to provincial areas would also benefit businesses with a wide geographic footprint, he added.

Wilcon specializes in local and imported home supplies like tiles, flooring, plumbing, sanitary facilities, hardware tools and lighting products. It also sells furniture, paint and building materials under its Wilcon Depot and Wilcon Home Essentials stores.

According to the company, on sale would be 1.39 billion primary shares, which could be offered at a maximum price of P5.68 each. Funds raised will mainly go to expansion activities and refinancing of debts.

Wilcon has 37 stores, 17 of which are in Metro Manila and 20 in provincial locations, according to its website.

“The company plans to solidify its presence in existing markets and expand its foothold in fast-growing cities outside of Metro Manila by building additional stores in 2017 to 2019 in order to reach and help more Filipinos nationwide,” Wilcon said in the statement announcing the IPO.

Wilcon tapped First Metro Investment Corp. as the IPO issue manager, lead underwriter and bookrunner.

The company, led by its chair William Belo, traces its roots to 1977, when it opened its first store along Quezon Avenue. Its popularity paved the way for expansion to new areas to reach more customers.