The Philippine Stock Exchange (PSE) has approved the initial public offering (IPO) of Villar-led grocery chain operator AllDay Marts Inc., which will be listed on the main board under the ticker ALLDY.
“We are pleased that we will be welcoming AllDay Marts as an addition to our roster of listed firms and we are glad that it chose the equities market to raise capital for its financial requirements and expansion plans,” PSE President and CEO Ramon S. Monzon said.
The company will sell some 6.85 billion in common shares as its primary offer and an over-allotment option of 685.71 million shares as its secondary offer. Both will have a par value of P0.10 and will be sold at an indicative price of P0.80 per share.
The final price of the offer is scheduled on October 12, while offer period is on October 18 to 25. It will be listed on the PSE on November 3.
Net proceeds from the sale could amount to P5.82 billion, which it said will be used for debt repayment, capital expenditures and initial working capital for store network expansion.
“We intend to retire our high-cost debt in the amount of P4.1 billion which were used primarily to fund our 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. Any balance of the net proceeds will allow us to partly fund our store network expansion,” the company said.
AllDay, which excludes the Villar Group’s convenience store chain of the same brand, is a supermarket operator with a total of 33 stores spanning 55,881 square meters in aggregate net selling space, as of end-June.
PNB Capital and Investment Corp. has been appointed as sole issue manager for the transaction. PNB Capital, BDO Capital and Investment Corp. and China Bank Capital Corp. were picked as joint lead underwriters and joint bookrunners.
After the IPO, the company’s public float will hit 33 percent.
AllDay wants to have 100 branches in the country by 2026, or an expansion of an average of 15 branches per year in the next five years.
The company said it will be expanding its presence in Metro Manila with new locations in Mandaluyong and Sucat this year. These stores are in addition to the four branches it has opened in Talisay, Bacolod, Cauayan and Sto.Tomas.
Next year, the company said it will have 10 new stores, ending 2022—an election year—with a total of 45 branches.
“We have always been proud to provide a global standard in our thrust of bringing AllDay to the local supermarket landscape,” said Manuel B. Villar Jr., chairman of AllValue Holdings Inc., AllDay’s parent firm.
“We have always believed that the Filipino deserves to be able to access a global standard of grocery shopping experience across the country. Given our synergy with the entire Villar group of companies, we are confident in our ability to maximize this synergy as we implement our strategy to grow the AllDay store network to 100 locations by 2026.”