PNB Capital and Investment Corp., the underwriter for the P4.5-billion initial public offering (IPO) of AllDay Marts Inc., will be refunding the subscriptions of retail investors that cannot be accommodated after the Villar-led firm secured more demand from buyers.
PNB Capital said AllDay’s IPO was 1.62-times oversubscribed.
“The overwhelming demand from the local small investors (LSI) who participated in AllDay’s IPO and subscribed to the company’s common shares resulted in the total demand for the offer shares exceeding the maximum allocation of 585.72 million common shares with an oversubscription of 1.11 billion common shares,” PNB Capital said in its letter to the stakeholders.
It was for this reason, and in accordance with the guidelines, that PNB Capital allocated fully-paid LSI applications in ascending order, or from the smallest to the largest orders.
“Due to the above-mentioned distribution mechanism, certain LSI subscribers may have been allocated shares that are less than the amount subscribed and paid for,” it said.
“For the affected LSI subscribers, please be advised that the receiving agent, Philippine National Bank acting through its Trust Banking Group, shall refund the affected LSI subscriber, without interest, starting on the fifth banking day from the end of the offer period or on November 2, 2021,” it said.
Check refunds is available for pick-up at the office of the PNB Trust Banking Group, PNB Financial Center in Pasay City.
“On behalf of the company, PNB Capital is truly grateful for the support of the investing public in this monumental IPO. The overwhelming demand is a testament to the high confidence of investors in the company and the post-pandemic recovery of the Philippine economy,” PNB Capital said.
The company that operates the AllDay Supermarket chain is selling to the public 7.54 billion shares, divided into 6.86 billion primary shares covering the primary offer and another 685.71 million secondary shares owned by mother company AllValue Holdings Inc. It will sell these shares at an offer price of P0.60 apiece.
The company is expected to gross P4.52 billion, proceeds of which from primary offer will be used to retire P4.1 billion high-cost debt it tapped from seven banks to fund store network expansion.
Part of the proceeds from the IPO will also be used by AllDay for the rollout of its new stores.