Villar’s AllHome plans P20.7-B IPO

Tycoon Manuel Villar Jr.-led home improvement retailer AllHome Corp. is planning a P20.7-billion stock market debut by September this year, riding on the resurgence of the bull market to pitch a new consumer play and potentially end the local initial public offering (IPO) drought this year.

Up to 1.29 billion shares, of which 750 million are primary shares, are planned to be offered to the public at as much as P16 a share, based on a prospectus filed by AllHome with the Securities and Exchange Commission (SEC).

About 375 million secondary shares will be placed out by key shareholder AllValue Holdings Corp., while 168.75 million will be added to the block in case of strong demand.

If all these shares will be sold, including the overallotment option, about 34.5 percent of AllHome’s shares will be in public hands.

UBS AG, CLSA Ltd. and Credit Suisse (Singapore) Ltd. are the joint international bookrunners while China Bank Capital Corp. and PNB Capital and Investment Corp. are the local underwriters.

Proceeds from the primary portion of the offering amounting to P12 billion will be used for capital expenditures and working capital for store expansion, alongside some debt repayment, the prospectus said.

Subject to regulatory approvals, the Villar group intends to launch the offering in September and list the company’s shares on the Philippine Stock Exchange under the ticker “HOME” by October.

Incorporated in 2013, AllHome is a “one-stop shop” home improvement retailer which operates 25 stores with a total net selling space of 196,327 square meters across 20 cities and municipalities as of end-June.

This retailing network sells over 800 local and international brands, including 18 in-house brands, including furniture, hardware, appliances, tiles and sanitary wares, homeware, linens and construction materials.

It primarily targets customers within the upper middle income to upper income segment, defined as those with an average monthly household income of around P70,000 and above.

AllHome’s existing stores have three formats—the large mall-based stores, the large free-standing stores and the small specialty stores, all under the AllHome name.

Before the end of this year, the group plans to launch the fourth store format, the “AllBuilders” store, which will offer a more extensive selection of hardware, tiles and sanitary wares, and construction materials.

For 2018, AllHome generated P7.19 billion in revenues, of which P511.4 million was booked as net income.

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