AllHome Corp., the soon-to-be-listed home improvement retailing company of billionaire Manuel Villar, plans to increase its network to 70 stores by 2020.
AllHome investor relations head Robirose Abbot said during a recent investors’ briefing the company was scheduled to open 20 stores in the second half of 2019 to end 2019 with 45 outlets.
By 2020, AllHome will open another 25 new stores to hit the target 70 outlets with over 460,000 square meters of store space.
Abbot said most of the stores slated for opening in the second half of this year were nearing completion stage while those scheduled for opening in 2020 were various stages of construction.
Abbot said the company also secured signed lease agreements over areas covered by the expansion, adding the properties were owned by the Villar Group.
AllHome also plans to expand in in-house brand products.
In-house brands as of the first half of the year contributed 4.7 percent to total revenues. With the move to bring in more in-house brands, AllHome expects revenue contribution of the sector to increase 10 percent to 20 percent by 2020 and beyond.
Meanwhile, underwriters of the AllHome initial public offering reported that the international and institutional portion of the P14.9-billion initial public offering was three times oversubscribed.
Gerry Valenciano, president of local lead underwriter PNB Capital and Investment Corp., noted a strong interest for AllHome shares because the price of P11.50 per share meant that they “left money on the table for investors.”
AllHome is offering 750 million new common shares along with 375 million existing common shares currently held by AllValue Holdings Corp., which has the option to offer 168.75 million more shares.
Of the 1.125 billion firm shares, AllHome offered 70 percent to international investors and qualified domestic institutions.
The company offered 20 percent of the 225 million shares through the trading participants of the Philippine Stock Exchange and 10 percent or 112.5 million shares to the local small investors program.
China Bank Capital Corpl. president Ryan Tapia said AllHome was the largest Philippine IPO in recent years and the fastest to be concluded at less than four months from its kick off on June 17 to its listing on October 10, 2019.