Wilcon Depot Inc., one of the country’s leading home improvement and construction supplies retailers, plans to raise up to P7.9 billion through an initial public offering in the first quarter of 2017.
Wilcon said in a filing with the Securities and Exchange Commission it planned to sell up to 1.393 billion common shares at an offer price of up to P5.68 apiece.
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 planned to set aside P6.08 billion for store network expansion from 2017 to 2019.
It plans to expand its presence in various 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.
It said at least 70 percent of the offer shares would be sold to qualified institutional buyers and the general public and 20 percent through trading participants of the Philippine Stock Exchange. The remaining 10 percent will be allocated to small local investors.
Wilcon, which plans to list under the main board of the PSE, operates the home improvement and retail construction business of the Belo family, led by chairman William Belo.
Since opening its first branch in 1977, Wilcon has expanded to a network of 36 stores nationwide, with a complete spectrum of product offerings which include local and international brands of tiles and flooring, plumbing and sanitary wares, electrical and lighting products, hardware and tools, furniture, furnishings and houseware, paints and building materials.
It operates its stores under the “Wilcon Depot” and “Wilcon Home Essentials” store formats.
Wilcon appointed First Metro Investment Corp. as the issue manager, lead underwriter and bookrunner.
The company said the offer period for the IPO would likely happen on March 13 to 17, while listing date was tentatively set on March 23.