Wilcon Depot sets offer price at P5.05 per share

Wilcon Depot at Libis facade

Home improvement and construction supply retailer Wilcon Depot has priced its initial public offering at P5.05 per share, the lower end of its indicative range, firming up its offering size at P7.03 billion.

This sets the company’s offering price about 16 times the projected company earnings per share this year, based on market estimates.

“It seems attractive at around 16 times P/E (price to earnings ratio). It leaves some money on the table for investors without hurting funding for growth capex (capital expenditures),” said Jose Mari Lacson, head of research at ATR Asset management.

The first company to debut on the Philippine Stock Exchange this year, Wilcon earlier set the indicative price range for its IPO at P5 to P5.68 per share.

“The offering received strong demand from institutional investors. The entire offering was more than three times oversubscribed and saw orders being placed by institutional accounts from both domestic and offshore markets,” First Metro Investment Corp. (FMIC) executive vice president Justino Juan Ocampo said in a statement.

FMIC is the issue manager and bookrunner. With BDO Capital & Investment Corp., it also serves as lead underwriter for the IPO. RCBC Capital Corp. is co-lead underwriter while Penta Capital Investment Corp. is a participating underwriter.

“(I’m) glad Mr. (William) Belo agreed to pricing at lower range to allow upside. At this price, he is allowing shares to be priced with around 25 percent discount to comparable (issuers),” said Eduardo Francisco, president of BDO Capital.

“We are very pleased with strong demand and interest in Wilcon as it is a consumer and also an infrastructure play,” Francisco said in a text message.

The retailer was authorized to sell up to 1.393 billion primary shares, giving it a market capitalization of over P20 billion after the IPO. —DORIS DUMLAO-ABADILLA