Villar’s grocery chain AllDay seeks P 6-B IPO
Amid the popularity of the “essentials” business due to recurring lockdowns, Villar group-led supermarket chain operator AllDay Marts Inc. has filed an application to sell as much as P6 billion worth of shares through an initial public offering targeted for October this year.
Based on a prospectus dated Aug. 10 filed at the Securities and Exchange Commission, AllDay plans to offer up to 6.857-billion primary common shares at an offer price of up to 80 centavos per share.
In case of strong demand, up to 685.71-million secondary common shares will be offered as part of an overallotment option.
Subject to regulatory and bourse approvals, AllDay plans to run the offering from Oct. 15 to 25 and list on the main board of the Philippine Stock Exchange on Nov. 3 under the trading symbol “ALLDY.”
30% to public hands
This proposed equity deal will bring 30 percent of AllDay’s stocks to public hands, which can increase to 33 percent assuming that the overallotment option is exercised.
Net proceeds from the offering of primary shares will be used for debt repayment, capital expenditures and initial working capital for its network expansion. Specifically, AllDay intends to retire high-cost debt amounting to P4.1 billion that bankrolled past and ongoing store network expansion.
“We believe that pursuing this strategy will increase the overall shareholder value of the company as this will decrease our financing cost by as much as P264.4 million per annum. Any balance of the net proceeds will allow us to partly fund our store network expansion,” the prospectus read.
Sole issue manager
AllDay has mandated PNB Capital as sole issue manager. BDO Capital, China Bank Capital and PNB Capital are the joint lead underwriters and bookrunners.
At least 70 percent of the base offering will be pitched to certain qualified buyers and other investors in the Philippines.
Since its incorporation in December 2016, AllDay’s footprint now covers 33 stores as of end-June. AllDay targets to grow its network to 45 stores by 2022 and 100 stores by the end of 2026.
For the first six months of 2021, AllDay delivered P179.6 million in net profit, up by 19.7 percent.
