Small investors can buy AllDay IPO shares for P600 up to P300,000

The Securities and Exchange Commission has allowed local small investors (LSIs) to subscribe to as much as P300,000 worth of shares in Villar-led grocery chain operator AllDay Marts Inc., three times larger than the usual LSI subscription limit for initial public offerings (IPO).

As this P4.53-billion IPO mostly targets local investors, the increase from the typical P100,000 cap makes it easier for retail investors to avail of IPO shares through the Philippine Stock Exchange (PSE) Electronic Allocation System during the offer period from Oct. 18 to 25.

The minimum subscription will be P600.

AllDay is offering up to 6.86 billion primary shares and up to 685.71 million overallotment option shares at a price of 60 centavos per share. This is 25 percent lower than the indicative maximum price of 80 centavos per share.

“We wanted to price the IPO responsibly at an entry point that maximizes long-term value for our new institutional and retail investors,” said AllDay chair Manuel Villar Jr.

“We hope to attract long-term shareholders that share our vision in disrupting the competitive landscape and elevating the customer shopping experience of Filipino families in the long run,” Villar said.The company is scheduled to list on the main board of the PSE under the ticker “ALLDY” on Nov. 3.

100th store milestone

“There is strong clamor from the public for investment opportunities in pandemic-resilient industries such as grocery retailing where AllDay is at the forefront, being the fastest growing supermarket operator,” said Gerry Valenciano, president of PNB Capital and Investment Corp., the sole issue manager for the offering.

PNB Capital, BDO Capital & Investment Corp. and China Bank Capital Corp. are the joint lead underwriters and joint bookrunners.

Part of the proceeds will be used for the rollout of new stores. The firm intends to reach a milestone of 100 stores by 2026, unlocking synergies within the Villar group of companies, particularly property developer Vista Land & Lifescapes.

To date, AllDay has covered 25 out of 147 cities and municipalities where Vista Land is present. Since its incorporation in December 2016, AllDay has rolled out 33 stores as of end-June.

AllDay is pitching to the market a modern grocery concept to sustain its rapid growth despite the pandemic. As a leading player in the midpremium segment, AllDay’s thrust is to provide an “elevated, modern grocery shopping experience with its innovative solutions and dual-format business model.” —Doris Dumlao-Abadilla