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Thursday, March 28, 2024

Wilcon gets nod for P7.9-b offering

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THE Securities and Exchange Commission on Thursday approved the P7.9-billion initial public offering of Wilcon Depot Inc., one of the country’s leading home improvement and construction supplies retailers.

This is the first initial public offering approved by the corporate regulator this year, according to SEC secretary Armando Pan Jr. Latest documents filed with the SEC showed Wilcon planned to sell up to 1.393 billion common shares at an offer price of up to P5.68 per share. Net proceeds from the fund raising activity will be used to finance store expansion, debt repayment and other general corporate purposes. 

Wilcon said of the expected proceeds, it would set aside P6.08 billion for store network expansion. The company intends to add 29 new stores over the next five years and expand its presence in fast growing areas across the country including Cavite, Zamboanga, Iloilo, Tacloban, Cabanatuan, Bicol, General Santos, Davao, Lucena, Isabela, Tagum, Tuguegarao, Surigao and Cabanatuan. 

The company also intends to use P1 billion from the expected IPO proceeds to finance outstanding obligations with several banks including Allied Banking Corp., BDO Unibank, Bank of the Philippine Islands and Rizal Commercial Banking Corp. At least 70 percent of the offer shares will be sold to qualified institutional buyers and the general public, 20 percent to trading participants in the Philippine Stock Exchange and the remaining 10 percent to small local investors. 

Wilcon operates the home improvement and retail construction business of the Belo family, led by chairman William Belo.

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