AllDay Marts Inc., the grocery chain owned by the Villar family, set the initial public offering price of its planned maiden share sale at P0.60 per share.
AllDay at this price level will raise P4.5 billion in proceeds which it plans to use for debt repayment and store network expansion.
AllDay will offer 6.857 billion common shares and 685.714 million in over-allotment shares.
The offering period will start from Oct. 18 to 25, 2021.
The company said it would use at least 77 percent of the IPO proceeds to repay P4.1-billion in debt that were used primarily to fund past and ongoing store network expansion.
“We believe that pursuing this strategy will increase the overall shareholder value of the company as this will decrease our financing cost by as much as P264.4 million per annum,” AllDay said.
Meanwhile, the remaining 33 percent of the proceeds will be allotted for store expansion.
The company had 33 stores as of end-June and targets to have 45 stores by 2022 and 100 stores by 2026.
The company tapped PNB Capital and Investment Corp. as the sole issue manager for the fund raising activity. PNB Capital will also work with BDO Capital & Investment Corp. and China Bank Capital Corp. as joint lead underwriters and joint bookrunners.
Post-IPO, AllDay will have a 33-percent public float assuming the over-allotment shares are exercised.
AllDay Marts provides customers with innovative and modern grocery experience as it banks on the premiumization of the middle-class Filipinos.
Despite the pandemic, the company managed to sustain an uptrend in profitability thanks to the synergy it has with Villar group’s other businesses.
AllDay booked a net income of P179.6 million in the first half, up 58.8 percent from the same period last year as sales climbed 19.7 percent to P4.49 billion from a year ago.
AllDay will be the fifth listed company of the Villar G, which also owns Vista Land & Lifescapes Inc., AllHome Corp., Vistamalls Inc. and Golden MV Holdings Inc.