ALLHOME Corp. has set the final offer price for its initial public offering (IPO) at P11.50 each — the low end of its indicative range, according to a notice on the stock exchange Thursday.
The final price is lower than the company’s earlier target of P16 apiece, where it would have raised P20.7 billion.
AllHome can raise up to P14.878 billion from the sale of up to 1.29 billion shares, consisting of 1.125 billion common shares and 168.75 million shares as part of the over allotment option.
The Villar-led company’s offer period will run from Sept. 30 to Oct. 4, with listing at the Philippine Stock Exchange scheduled for Oct. 10.
Proceeds from the issuance will be used to construct 43 stores until 2020, out of the 45 new ones it will put up in the same period. A portion will also be used to repay debt, which were obtained as the initial working capital of its 20 existing stores.
Upon listing, the company will have a public float of 34.5%, and a market capitalization of up to P60 billion.
AllHome hired UBS AG, Singapore Branch as the offer’s sole global coordinator and joint bookrunner. CLSA Ltd. and Credit Suisse (Singapore) Ltd. will act as joint bookrunners, while PNB Capital & Investment Corp. will act as local lead underwriter. China Bank Capital Corp. will also serve as co-lead local underwriter.
The company generated a net profit of $8.5 million in the first six months of 2019, following $98.6 million in revenues.
AllHome’s maiden share sale is set to be the third this year, following real estate management firm Kepwealth Property Phils, Inc which raised P383 million, and coconut products manufacturer Axelum Resources Corp. whose offer period for its P4-billion fund-raising is ongoing until Sept. 30.
Three more firms are looking to list their shares at the PSE, namely Taiwanese firm Cal-Comp Technology (Philippines), Inc. (P10.68 billion), Metro Pacific Hospital Holdings, Inc. (P83.3 billion), and Fruitas Holdings, Inc. (P1.2 billion). Their applications are currently awaiting approval from the Securities and Exchange Commission.
The surge in the number of companies seeking to go public this year comes amid continued volatility in the stock market, which has been trading at the 7,700 to 7,900 range due to concerns on the US-China trade war, slowing global economic growth, and other local factors. — Arra B. Francia