The Philippine Stock Exchange has approved a plan by home improvement and construction supply retailer Wilcon Depot to conduct an initial public offering (IPO) of shares worth up to P7.9 billion this month.
Wilcon was authorized to sell up to 1.393 billion primary shares at a maximum offer price of P5.68 per share.
Proceeds will be used to fund the expansion of its store network, repay existing debts and for other general corporate purposes. Part of its expansion plan is to establish a foothold in fast-growing cities outside of Metro Manila by putting up 28 stores in the next five years.
The company appointed First Metro Investment Corp. as the issue manager and bookrunner, and together with BDO Capital & Investment Corp., as joint lead underwriter for the IPO.
The final offer price will be announced on March 17 while offer period will be from March 20 to 24. The listing on the PSE is scheduled on March 31.
First Metro executive vice president and head of investment banking Justino Juan Ocampo said: “We anticipate strong demand for the Wilcon Depot offering given its growth story and the promising opportunities in the home improvements and construction supply retailing space. The company is expected to benefit from heightened public and private construction activities in the country, healthy demand for housing units due to ever-expanding domestic household formation, and the continued dynamic growth of the Philippine economy. This IPO is also the first this year, and for investors who have long been waiting for a singularly exceptional investment opportunity, this is it.”
Wilcon Depot was established by its chairman William Belo in 1977 in a 60-square meter store along Quezon Ave., manned by four people. The company now operates a total of 37 stores strategically located nationwide.