Wilcon’s IPO plan OKd

The Securities and Exchange Commission has approved a plan by the country’s leading home improvement and construction supplies retailer Wilcon Depot Inc. to raise as much as P7.9 billion through the stock market.

Wilcon plans to offer 1.39 billion primary common shares at up to P5.68 per share.

This will bring to public hands about 33.9 percent of the company’s shares after the initial public offering.  Wilcon seeks to list 4.099 billion shares on the stock exchange.

Net proceeds are estimated at P7.58 billion after deducting underwriting fees, costs and expenses, according to SEC documents.

Some P6.1 billion or 81 percent of the net proceeds will be used to fund store network expansion from 2017 to 2021, documents showed.

Some P972.44 million will be used by Wilcon for debt repayment while P500 million will be set aside for general corporate purposes.

Wilcon has appointed First Metro Investment Corp. as issue manager, lead underwriter and bookrunner for this transaction.

Wilcon operates the home improvement and retail construction business of the Belo family led by its, chair William T. Belo. Since opening its first branch in 1977, Wilcon has expanded to a network of 36 stores nationwide. Its product offerings include local and international brands of tiles and flooring, plumbing and sanitary wares, electrical and lighting products, hardware and tools, furniture, furnishings and houseware, paints, and building materials, among others.